Banks must make sure people can access cash before closing branches

New rules are being introduced on 18 September to make sure people can still access cash when their nearest bank or building society closes.

Any significant gaps will need to be plugged by additional services, the Financial Conduct Authority (FCA) says.

The new powers won’t stop any branch closures, though some branches will have to stay open until alternative cash access is available.

Why are so many banks closing?

Thousands of high street branches have closed in the last decade, with 69 set to close in September 2024 alone. Of these, 20 have no other branches nearby, putting people at risk of financial exclusion.

Banks say we prefer to use mobile and online banking, with fewer people choosing to visit their local branch.

But three million people rely on cash – especially lower-income families who are often excluded from digital services.

Earlier this week, Hexham MP Joe Morris used his first parliamentary debate to call for action to stop rural communities becoming “banking deserts”.

Economic secretary Tulip Siddiq said the government is “committed to improving connectivity and digital access for all”.

What do the new rules mean?

The new rules mean branch closures will need to be weighed up against existing cash services.

Major gaps will need to be plugged by:

• banking hubs – Labour have promised to open another 350 in the next five years
• ATMs
• Post Office facilities

Banks will have to consider local communities’ needs before closing any branches and see if additional services are required.

They’ll also have to address concerns about local cash access.

Which banks and building societies will need to plug the gaps?

The government has said these 14 big-name banks will need to take action:

• AIB Group
• Bank of Ireland (UK)
• Bank of Scotland
• Barclays
• Co-op Bank
• Clydesdale Bank
• HSBC
• Lloyds
• NatWest
• Nationwide
• Northern Bank
• Santander
• Royal Bank of Scotland
• TSB

Has your local bank closed?

More than 600 bank branches closed in the UK last year, with more set to shut their doors for good by the end of 2024.

Banking hubs are the main alternative for lost branches, although they aren’t a like-for-like replacement – read more about them in our guide.