Ahead of a discussion in Westminster Hall, the Countryside Alliance has shared a briefing note about the provision of face-to-face banking services in rural areas.
The full briefing note can be downloaded here, with the key points summarised below.
- Banking is an essential service underpinning economic growth, thriving businesses and resilient communities.
- Cash continues to play an important role across much of the rural economy. Government has taken important steps to protect access to cash, but rural communities need the full range of banking services - business banking, lending advice, cash deposits and face-to-face support - not simply a nearby cash machine.
- Bank branch closures have disproportionately affected rural communities. Unlike in urban areas, the closure of a rural branch can mean a round trip of many miles simply to carry out routine banking.
- Where local branches have closed, businesses are often forced to carry larger amounts of cash over longer distances, retain cash on premises for longer periods, or postpone banking until a journey becomes worthwhile. Each of these can increase vulnerability to theft and criminal targeting.
- Post offices and banking hubs can be useful substitutes when bank branches are genuinely found not to be commercially viable, but both require investment in partnership between government, banks and operating companies.
- As banking continues to evolve, government, regulators and industry must ensure rural communities are not disproportionately disadvantaged.
- The growth of online banking also means that rural areas must have access to reliable broadband and mobile connectivity, which currently remain inconsistent. This aspect of digital exclusion is a product of inadequate infrastructure rather than personal choice.
