Bishop speaks on bank closures impact on rural areas, elderly, and digital divide in the Tyne Valley.
Lloyds Banking Group will close 136 branches by next March, including Lloyds, Halifax, and Bank of Scotland. This is because more people use online banking, but two Hexham branches and one Prudhoe branch will also close.
The bank said fewer customers visit the Hexham and Prudhoe branches and suggested using the app or online services. ATMs and the Post Office offer cash access, and customers can call or talk to a community banker.
A Prudhoe town councillor started a petition to save the banks, arguing they make banking accessible to everyone. This is especially true for those who cannot bank online.
Revd Hartley leads the Newcastle Diocese, which includes Hexham and the Tyne Valley.
She thanked those taking part in the debate, noting the issue affects more than just rural areas. Hexham customers must travel 15 miles to Consett to reach the nearest Lloyds after closures. Which? says over 6,266 branches closed in the UK since 2015 – 63% of the branches open then. She fears a society excluding people from banking, affecting those who cannot bank digitally, saying stripping services without options is the core issue.
Prudhoe’s Lloyds branch saw transactions almost halve. Online banking suits many people, but some rely on in-person banking, including those with unreliable internet. Others struggle with online systems and fear fraud also. Those with low incomes use cash often, and some need advice for mortgages or business. A phone call cannot replace face-to-face meetings. Services in person help vulnerable people greatly.
Bank closures reflect declining high street services. Services foster connection in communities, and access to cash remains crucial for five million daily users. Bank closures hurt small rural businesses plus owners travel to bank.
The FCA put a duty on banks to assess the impact of branch closures and ensure services before closure. However, cash assessments only address part of the issue and don’t protect face-to-face services people need. A check in Prudhoe found cash access within a mile, so it deemed no need for a banking hub there. But, it did not consider losing the town’s only bank branch.
She supports banking hubs, letting people access bank services in person. The government plans 350 hubs in five years, including Alnwick, Amble and Whitley Bay.
She worries about the hub rollout speed though, as it takes about twelve months to open a hub. Finding property and appointing staff takes time. She asked how to speed up banking hub rollouts. She asked about guaranteeing service during bank closures and wondered if 350 hubs would be enough, thinking the government should increase the target.
Hubs also help bridge the digital gap. She asked about training for online finance and added hubs should assist and promote digital inclusion.
Revd Hartley emphasized online banking’s value. Yet, she said it must not remove services or exclude vulnerable individuals.