More Scottish towns to get new banking hubs
Banks will co-operate to staff the centres
Last updated 6th Sep 2022
Four Scottish towns are being promised new banking hubs to help replace branches which have been closed down and fill gaps in access to cash in communities across the UK.
There wil be among an extra 13 being set up which will bringing the total number planned to 25, according to ATM network Link and the Cash Action Group, which includes banking industry representatives and others.
The Scottish locations will be Brechin in Angus, Forres in Moray, Carluke in Lanarkshire, Kirkcudbright in Dumfries and Galloway.
Banking hubs operate in a similar way to bank branches, but their services are shared, with banks providing staff on rotation so that trained specialists from different banks are available on different days.
As the impact of the cost-of-living crisis becomes increasingly apparent, the hubs are likely to become an ever more important resource, particularly in communities with minimal or limited cash access or banking facilities, those behind the initiative said.
A bank is back in town
Commenting, Lanark and Hamilton East MP Angela Crawley said:
“This is fantastic news for Carluke and I am eager to see how these plans will progress.
“It was a shame to see the last bank in Clydesdale’s largest town close earlier this year. The town should never have been left without proper banking facilities so I am glad to see this will return.”
Lanarkshire pilot
The first banking hubs were piloted last year in Cambuslang, South Lanarkshire and Rochford in Essex. The two hubs have already had approaching 60,000 customer visits and transactions worth ÂŁ16 million have taken place since they opened.
John Bachtler, chair of the Cambuslang Community Council, said: "The banking hub is the centre of our community and it's bringing life back to the high street and crucially helping people and businesses with their everyday banking needs.
"It gets busier and busier every week and we know it will make a significant difference in other communities across the UK."
Bank branch closures, alongside other trends, have sparked concerns about people's continued ability to easily access cash.
The Post Office also has an agreement that helps people to do their everyday banking over its counters.
Convenience stores have also been offering cashback at tills as part of the initiatives to address gaps in the cash system.
There are also initiatives under way to provide standalone deposit services and banking services in libraries or community centres.
The UK Government has also said that people across the UK will benefit from new legislation to protect access to cash.
Cash is still king
Natalie Ceeney, chair of the Cash Action Group, said: "Cash still matters hugely to millions of people across the UK and with the cost-of-living crisis biting, more and more people are turning to cash as a way of budgeting effectively."
She continued: "This is only the start. The hub network will expand significantly to meet the demand of communities across the UK. I would expect us to be supporting hundreds of communities within a few years."
John Howells, CEO of Link, said: "The UK isn't ready to go cashless yet and it's vital to protect our national cash infrastructure for the millions of consumers who still rely on cash. The intended legislation is a very positive step that will ensure access to cash for UK consumers for years to come.
"Any community with a problem with access to cash can now contact LINK and ask for help.
"We will also proactively check every community where ATMs and branches are closing to see if help should be provided. Where a community lacks the access that it needs, Link will commission services such as free ATMs and shared banking hubs from the new company being set up by the banks.
High street names which disappeared
Blockbuster
Before Netflix, Amazon Prime, Disney+ and the mass of digital streaming services available today, Blockbuster was the best source of Saturday night entertainment. It was the main place that customers would rent movie DVDs and video games, but the store went bust in 2013.
All 91 UK stores were closed by December 2013, while Netflix had turned $112m in net income that same year.
BHS
In 2016, it was announced that BHS would enter administration, after 94 years of being open. 11,000 jobs were put at risk, as the department store selling everything from groceries to beauty products was forced to shut. With debts of ÂŁ1.3bn, no buyer was found for British Home Stores, resulting in the closure of all high street outlets, which remained open for 8 weeks while stock could be sold.
JJB Sports
JJB Sports, JD Sports and Sports Direct were largely interchangeable, selling similar sportswear and products and in constant rivalry for the biggest market share.
However, it was only the latter two brands that survived, and prospered. Total shares in JJB valued around ÂŁ500m in 2010, but had collapsed to just ÂŁ1.2 by September 2012. That same month, JJB entered administration and it was expected that all 180 stores would close.
However, former high street competitor Sports Direct stepped in and acquired the JJB name, saving around 550 jobs across 20 stores. The rest closed their doors and any that remained were turned into Sports Direct outlets.
Staples
Everyone has visited Staples at least once in their life for school equipment or office supplies, but since 2016, the brand has moved completely online. All 106 UK stores employing 1,100 members of staff closed their doors after the brand was sold to Hilco.
Toys R Us
Toys R Us, the US-founded toy superstore, was a massive hit in the UK up until it fell into administration and subsequently closed all 100 stores in 2018. But, the store is returning to the UK almost four years after disappearing, the chain store's parent company has announced. It hopes to establish physical stores and employ local workers during 2022 and 2023.
Woolworths
Founded in 1909, Woolworths was an ever-present on high streets, with 807 stores in operation by the time it closed all its doors in 2009. On the 17th December 2008, administrators announced that all UK branches would close, and final sales began to get rid of as much stock as possible. 27,000 employees lost their jobs.
Debenhams
High street retailer Debenhams closed down shops entirely in May 2021, after shoppers rushed to get the best deals on final sale stock. There were once 150 different stores across the UK, but after continuous losses the chain entered administration in 2019. Online fashion brand Boohoo bought Debenhams out of administration for ÂŁ55m, and has been incorporated into the fast-fashion business's online trading. But, the Covid-19 pandemic proved fatal in keeping Debenhams' physical stores open - their closure resulted in 12,000 job losses.
Encouraging move - Which?
Jenny Ross, Which? money editor, said: "The country's cash infrastructure has been cut to the bone in recent years due to ATMs and bank branches closing, leaving millions of consumers who rely on cash and face-to-face banking services at risk of being cut adrift.
"These hubs, as well as ones announced in December, must open as soon as possible so consumers can benefit.
"However, only long-promised legislation will properly protect cash.
"The Financial Conduct Authority must be given the appropriate powers to oversee the framework of the country's cash system, including determining a local community's access to cash needs based on geographic distances, as well as holding banks to account.
"Given the rate of bank branch and ATM closures in recent years, that cannot happen quickly enough."