UK Ministers Begin Review of Access to Face-to-Face Banking Services
The UK government has initiated an independent review of access to face-to-face banking facilities across the nation. This move is in line with plans to introduce powers which would allow intervention when local provision is at risk. The move comes in response to the growing trend of customers managing their finances online, leading banks and building societies to adjust their branch networks. However, the reduction in physical sites may be causing difficulties for people who still depend on in-person services.
The Review and Its Purpose
The review has been commissioned by Economic Secretary to the Treasury Lucy Rigby and will be led by Richard Lloyd, the former director of Which? and former member of the Financial Conduct Authority board. The purpose of the review is to collect evidence on the practical effects of bank branch closures, identify the groups most affected, and consider whether further measures are needed to preserve access to banking services.
Rigby said, “Banking services are a really important part of lives and communities, and it’s critical we can all access what we need – whether through local banking services or strong community-based alternatives like credit unions. We are supporting industry’s roll out of banking hubs, but we also need a clear picture of where communities are still losing out. This independent Review will show us where the problems are and what further action may be required – and we will move quickly to legislate where the evidence shows it is needed.”
Future Legislation and the Financial Services and Markets Bill
The review is linked to the Financial Services and Markets Bill announced in the King’s Speech. The Treasury has indicated it intends to include a power in the legislation so it can respond quickly if the evidence suggests action is needed on access to banking. Lloyd is due to deliver his report and recommendations to the Government by October 2026.
The Bill is also set to advance some of the credit union common bond changes announced in March, with the aim of making it easier for credit unions in Great Britain to widen their membership and expand. The Government said these changes will help more people gain access to affordable credit and secure savings options, while supporting community-based financial services.
The implications of these changes are significant and will impact communities across the UK. The outcomes of the review will be eagerly awaited by those who rely heavily on physical banking services.
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Source: Retail Banker International
