The Financial Conduct Authority (FCA) has released a statement addressing growing concerns about cash access for bank customers as many communities face a decline in face-to-face banking services. This follows parliamentary discussions highlighting the potential impact of widespread bank branch closures.
Caroline Voaden, Member of Parliament for South Devon, led a recent debate emphasising how banking services in rural areas have been severely diminished. She expressed concern that local residents are being left with limited options to access banking facilities. Similarly, David Reed, MP for Exmouth and Exeter East, painted a picture of the seaside town Budleigh, where “every major bank” has departed, leaving the town struggling with no local access to cash despite its tourist economy.
Ms Voaden explained that her constituency currently has two banking hubs, both established before tighter regulations came into effect. She criticised the recent narrowing of criteria for opening banking hubs, stating that pre-September 2024 rules were broader. Now, the focus has shifted exclusively to cash access, overlooking other essential reasons why customers may need to visit a bank branch.
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A spokesperson for the FCA acknowledged the importance of appropriate access to banking services, noting that Parliament has mandated the FCA to safeguard cash access specifically, though not the full range of banking services. “In response, we required banks and building societies to fill gaps in cash access, including through banking hubs, with the 250th hub due to open soon,” the spokesperson added.
The FCA further confirmed that local communities have the right to request an assessment of cash access and can challenge the outcomes if they feel their needs are not being adequately met. The regulator also expressed its commitment to supporting the Government’s comprehensive review of access to banking services underway at present.
An independent review is currently examining the trend in access to in-person banking, assessing the extent of service reductions experienced by customers. The review panel is expected to finalise its report and recommendations for the Labour Government by October 2026, after which the findings will be made publicly available.