The 100th banking hub has been launched as part of efforts to protect communities’ access to cash.
Chancellor Rachel Reeves and Economic Secretary Tulip Siddiq will open the hub in the market town of Darwen, Lancashire, on Friday following a community request after bank branch closures in the area.
A banking hub is a shared space on the high street that can be used by customers of different banks.
Like other hubs, the Darwen branch offers a counter service operated by the Post Office. Customers of major banks can carry out regular cash transactions from Monday to Friday.
It also offers a community banker service where customers can talk to their own bank about more complex issues on the day their bank is in the hub.
Community bankers work on rotation, with a different bank available on each day of the week.
Darwen’s hub is located in the town centre, on Market Street.
Ms Reeves said: “Reaching this milestone of 100 banking hubs is a huge step towards making sure that people across the country have access to essential face-to-face banking services.
“High streets are the beating heart of our communities but were neglected for too long under the previous government.
“We are revitalising our high streets with our target for 350 banking hubs, reforming business rates to make them fairer and clamping down on antisocial behaviour.”
The Government has set a target to roll out 350 hubs by 2029, with 230 expected to be open by the end of next year.
Cash Access UK, a not-for-profit company set up to protect access to cash, said that alongside the 100th hub opening, 100 deposit services will be live by the end of the year.
Deposit services allow small businesses to deposit and access cash either through deposit ATMs, where customers from different banks can bank notes, or enhanced post offices where there is a separate counter for banking customers.
ATM and cash access network Link carries out assessments to understand how the closure of a bank branch will affect access to cash for the community.
Communities can also ask to Link to carry out an assessment if they feel they need better access to cash.
Cash Access UK is owned and funded by 10 major banks to provide shared services to their customers.
Link will protect access to cash for as long as people need it
Gareth Oakley, chief executive for Cash Access UK said: “Thanks to the exceptional industry collaboration from the banks who support us, I’m delighted that in a such short space of time we have been able to successfully open 100 banking hubs as well as deliver 100 deposit services.
“It’s been a particularly busy year, this week alone we have officially opened five hubs.
“Our hubs are proving extremely popular, which shows that access to cash and banking services remains vital for millions of individuals across the UK, despite more people choosing to bank and make payments digitally.
“We’re delighted to have reached this latest milestone and will continue our work to bring more of these services to the communities that need them most.”
John Howells, chief executive at Link said: “The network of 100 banking hubs is keeping cash alive in local communities and is key for those consumers not yet willing or able to use digital.
“To date, Link has recommended 176 banking hubs, including eight this week, alongside more than 100 deposit solutions. Link will protect access to cash for as long as people need it.”
Together, we are on our way to meeting the Government's target to open 350 hubs by the end of the Parliament
Neil Brocklehurst, acting chief executive at the Post Office said: “I am thrilled that, as a result of the hard work of our partners Cash Access UK, our own hub team colleagues and our postmasters who run the hubs, we have today officially opened the 100th banking hub.
“Together, we are on our way to meeting the Government’s target to open 350 hubs by the end of the Parliament and I want to thank every postmaster and their teams for making the running of banking hubs possible.”
Between five and six million adults are estimated to rely on cash in their day-to-day lives, according to those behind the initiative.
The process of opening a banking hub can take several months from start to finish as suitable properties need to be found.
Recent analysis of data from Link indicated the UK has seen around one in 10 ATMs close over the past three years.
And more than three in every five bank branches across the UK have closed their doors permanently since 2015, according to research from Which?.
Which? has said the impact on local communities can be devastating, with some of the most vulnerable members of society, such as those living with disabilities or on lower incomes, reliant on branches and either unable or unwilling to switch to digital banking.
New rules overseen by the Financial Conduct Authority (FCA) came into effect in September, meaning banks need to give more consideration to a local community’s cash needs before deciding to close a branch.
It's vital that the Government holds its commitment to opening 350 hubs in the next few years - and it should be prepared to revise that figure upwards if necessary
Sam Richardson, deputy editor of Which? Money, said: “Thousands of branches have closed their doors in recent years, often leaving those reliant on their services in the lurch or having to travel long distances to access them.
“Banking hubs are likely to be the future of banking, replacing shuttered branches, and while it’s encouraging to see this milestone passed their rollout remains too slow for consumers to feel their benefit.
“It’s vital that the Government holds its commitment to opening 350 hubs in the next few years – and it should be prepared to revise that figure upwards if necessary.”
