Hubs need to ‘do more’ to close gap left by bank closures

Thousands of bank branches have closed over the last decade, with banking hubs popping up in their place to try and fill the gap.

More of us are turning to the Post Office-run hubs, which offer limited banking services, but they’re being told to do more by the government.

Labour want to increase the number of high-street banking hubs to 350 over the next five years.

What’s the government said?

The government’s told the banking industry to improve the range and quality of available services.

While they say hubs aren’t supposed to be “a like-for-like” replacement, customer needs must be “appropriately met”, the Treasury says.

That’s because there are still some things you can’t do at a banking hub, such as opening an account or anything that needs paperwork to be signed or scanned.

You also can’t send CHAPS payments for high-value purchases e.g. when you’re buying a car or house.

What services are available at banking hubs?

It’s ultimately up to the banks what they choose to offer. That’s because there are no rules yet telling them which services to provide. Only being able to access cash is protected by the Financial Conduct Authority (FCA).

Banking hubs have a Post Office counter where you can:

• pay in and withdraw cash
• deposit cheques
• pay utility bills

Banks take it in turn to send their own staff in to help answer any customer queries. There’s usually a different one available each weekday.

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 can help plug the gap where a town has lost all its banks – read more about them in our guide.