At least 245 bank branches are set to close this year creating a ‘banking desert’ across the UK
The number of banks and building societies on the high street is continuing to decrease, with the firms blaming the rise in online banking.
Almost 400 towns have been told their last local bank is closing in the past two years, figures show.
In some parts of the UK, residents have had to contend with their local bank branch shutting and being left with no alternatives close by.
As the access to face-to-face bank services becomes more scarce, the Labour Party has pledged that under a Labour Government, they would ensure every community has access to high street banking services.
They have warned that many communities are turning into “banking deserts” as branches disappear from high streets.
Since the start of 2022, major banks such as HSBC, NatWest, Lloyds, and Halifax have announced the closure of 388 branches as less people bank on person.
It means those most vulnerable are left without a local branch and no alternatives nearby.
With the banking industry becoming more digital, Age UK has warned that older people are at risk of financial exclusion as they may not able to manage their money online.
Business groups have also raised concerns about how many small firms are losing time as they are having to travel further to pay in money.
As a way to help those who are most affected and still use in person banking, the Government announced the introduction of banking hubs, however only 40 have opened.
These banking hubs are run by Post Office and allow customers to complete a variety of banking tasks such as withdrawing and depositing cash, making bill payments, and carrying out regular banking transactions.
They also have areas where staff from different banks are available on different days.
Tulip Siddiq, Labour’s Shadow City Minister, said: “The Government’s failure to roll-out banking hubs has left Britain’s high streets in decline and cut off hundreds of thousands of people and small businesses from the services they need.
“Almost 6,000 bank branches have closed their doors since 2015, but under the Conservatives just 40 banking hubs are operational, despite many towns being promised new banking services months ago.
“Labour’s plan will bring banking services back to communities who have seen them disappear over recent years, meaning more people and small businesses across the country will be able to access the services they need closer to home.
“Labour will tackle ghost high streets and ensure that every community has access to high street banking services.”
Which? has been tracking bank branch closures since 2015 and has found banks and building societies have closed 5,908 branches since January 2015, at a rate of around 54 each month.
As a way to facilitate these closures, roughly 100 hubs are expected to be opened by the end of the year, but Labour has said it would go further by guaranteeing the opening of at least 350.
