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Banking Hubs

Answer

LINK, the operator of the UK’s largest ATM network, is responsible for assessing a community’s access to cash needs. When asked to carry out a cash access assessment, LINK takes into consideration a wide range of criteria, including those unique to each location, such as the size and vulnerability of the population, existing and remaining cash access facilities and the number of shops. Specifically, LINK takes into consideration population demographics, public transport links and whether it is reasonable for people to travel to nearby facilities, including the actual travel distance. LINK uses a catchment area of 3 miles in rural locations and 1 mile in urban areas and considers if there is a significant impact on nearby towns.

The FCA is legally required to keep its rules under review, including those relating to access to cash. Where a resident, community organisation or other interested party feels access to cash in their community is insufficient, they can submit a request for a cash access assessment. LINK’s access to cash assessment process can be found on its website.

There are currently no existing legislative or regulatory protections for the provision of access to in-person banking services. That is why on 14 May, the Government commissioned an independent Review into Access to Banking Services to assess the impact of changes in the provision of in-person banking services. The Review will examine whether changes to access to in person banking services are causing consumer detriment, the scale of any detriment, and who and where it affects, including in rural, coastal, and market town communities, and will consider how current arrangements for assessing local need are operating in practice. The Chair will provide a report and recommendations to the Government upon its conclusion, at which point the Government will consider any future actions. Alongside the Review, the Financial Services and Markets Bill includes a power to allow the Government to take action in future to protect access to banking services, should this be necessary. This power ensures the Government can act swiftly and proportionately, including through future regulation, if the evidence from the Review supports intervention.

The Government understands the importance of banking services to communities, including those in rural and coastal areas and market towns, and continues to work closely with industry to support the roll-out of 350 banking hubs by the end of this Parliament. Over 275 hubs have been announced so far, and more than 235 are already open across the UK.

In addition, customers can also access everyday banking services through the Post Office network, with over 10,000 branches providing services such as cash withdrawals and deposits, balance enquiries and bill payments.

Secondary information

Type

Written question

Reference

5943

Session

2026-27

Subjects

Coastal areas Eligibility Rural areas Reviews Banking hubs

Link

View this Written question on www.parliament.uk