In early February, I signed a letter to the Chief Executive of the Financial Conduct Authority.
This letter asked him to review the following;
- Ensuring the direction of travel is clear when it comes to banking closures, LINK should be able to recommend a banking hub in an area where a few branches remain.
- This would allow staff to be moved over to the banking hub more seamlessly and, crucially, ensure that a community is not plunged into a limbo period. Ultimately, if a community with six banks loses three of these in a few years, it is reasonable to assume that the remaining three may close in the few years that follow.
- We would urge you not to move from a “last bank in town” rule to a “last two banks in town” one, but, rather, to a rule where LINK can assess each community uniquely and properly protect access to cash.
- Despite modern innovations, we do not live in a cashless society. People still require banks, and banking hubs and similar schemes are the solution to this.
A month later we received a response, which outlined that the FCA are continuing to expect firms closing branches to meet the expectations of our existing guidance on Branch and ATM Closures. This requires firms to conduct detailed analysis on the needs of customers currently using a branch and the likely impact of the closure. We also require firms to consider what can reasonably be put in place to meet these identified, ongoing needs. Any alternative solutions identified as needed (or suitable interim arrangements) should be in place ahead of a closure taking place. In addition, our Consumer Duty also requires all firms to act to prevent foreseeable harm to their customers, which may arise from branch closures or reductions in branch services.
Please see the details of the letter and response below.
It makes me really proud to continue serving as your MP for Uxbridge and South Ruislip, so I can write and sign letters on topics my residents care about.
