New rules to force banks to evaluate cash access for local communities

Customers and small businesses are set to benefit from new rules being introduced across 14 banks.

Customers and small businesses will benefit from new rules being introduced across 14 banks.

The Financial Conduct Authority (FCA) is introducing rules that will force banks and building societies to evaluate whether local communities have adequate access to cash services. If a community is found lacking, banks will be required to provide additional services, including branches and ATMs.

The new rules, effective from today (Wednesday September 18), will demand banks and building societies to respond to residents, local organisations, and other groups in a local community if they request an assessment to identify any gaps in local access to cash services.

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The FCA has confirmed that these gaps could be filled with various measures, including Post Office facilities. It will be the responsibility of the banks themselves to deliver any necessary additional services to bridge the gap.

The FCA's rules also state that there should be no unreasonable delays in providing solutions to gaps in cash services. If frequent violations of the rules are discovered, the FCA has stated it will use its powers to rectify them, reports the Express.

In areas where there is only one bank branch, the rules will mandate them to establish a banking hub and ensure it is active and functional before closing the doors of that branch. This should help guarantee that no local community is left without cash services available through its bank or building society.

Banking hubs, overseen by the Post Office, are shared centres providing a range of services usually found at local bank branches, including cashing cheques and withdrawing money.

Here are the 14 banks that will need to adhere to the new rules:

FCA figures reveal that between June 2021 and June 2023, a staggering 1,358 banks and building society branches shut their doors. An additional 69 branches are set to close in September, with Halifax, Royal Bank of Scotland (RBS), Lloyds, NatWest and Barclays among those affected.

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