Shared bank hub trials to be extended

The shared banking hub trial, which is taking place in communities that have seen all of their banking branches close, is currently operating in Cambuslang, south Lanarkshire and Rochford, Essex. Run by the Post Office, they offer face-to-face access to “community bankers” representing banks that most customers in the area use.

The extension is designed to give banks and local communities more time to “test new innovations, adapt services to meet people’s needs, and build insight to inform effective solutions for the long term”.

Since being launched in April 2021, the BankHUBs have helped provide more than 12,000 customers with access to cash and basic banking needs, with a survey of users in Cambuslang showing that there’s more than 95% local satisfaction with the service. The survey also showed that users of the service are spending more time and money shopping in Cambuslang’s main street.

Commenting on the news, the Access to Cash Action Group’s independent chairwoman Natalie Ceeney said: “We can already see the positive role the hubs are playing in revitalising these local communities – providing essential banking services for individuals as well as a boost for local businesses.

“Extending the pilots gives us more opportunity to really understand what works for people, and what role services like these could play in the future. These are early steps, and over the coming months the group will explore a wide range of options to protect access to cash.”

In addition to this, the pilot-testing of a “cashback without a purchase” scheme will be extended to many other shops. The pilot has taken place in eight areas across the UK, with customers making thousands of withdrawals and balance enquiries – taking out an average of £28 each time.

Many were for “non-round” amounts that would not be available from an ATM – with one high street bank reporting that half of their customers who used cashback were considered vulnerable. The results have prompted new government legislation opening the door to thousands of retailers offering cashback to customers without them needing to make a purchase.

Through the scheme, customers insert their bank card into an eligible terminal on the counter and can withdraw exactly the amount they need – with the cash provided by the retailer directly from the till.

Commenting on this news, the treasury’s economic secretary John Glen said: “The government brought in new laws to make it easier to offer cashback without a purchase earlier this year and it’s great to see the industry taking advantage of these.

“The next step is to get this innovative new solution rolled out to shops in our local communities to protect access to cash for the millions of people who rely on it.”