In case your native financial institution or constructing society has lately closed – or will shut quickly – you aren’t alone.
1000’s of financial institution branches have closed in recent times. Lloyds and Halifax lately introduced they might shut a further 40 branches this 12 months, whereas Barclays mentioned on Saturday it could shut one other 15 branches. Final 12 months, HSBC mentioned it could shut 114 branches from April 2023.
The banks say demand has declined as an increasing number of prospects are banking on-line. Nevertheless, some folks depend on their financial institution department to withdraw and deposit money (together with small companies), some prospects have a tough time utilizing digital providers, whereas others might respect speaking to a member of employees about their funds in individual .
As branches shut, you might even see a brand new “banking hub” pop up in your space, the place folks from completely different banks can deposit and withdraw cash. In the meantime, Barclays prospects may quickly use a “banking pod” at a mall or retail park close to them.
We clarify how financial institution hubs and financial institution pods work, the place the brand new financial institution hubs will probably be positioned and what the alternate options are in case your native department is closed and you continue to need face-to-face banking.
What’s a banking hub?
Financial institution hubs enable prospects of various banks to deposit and withdraw funds. They provide a put up workplace counter service the place prospects of all main banks and constructing societies could make common money transactions Monday by way of Friday.
The hubs additionally supply particular rooms the place prospects can see neighborhood bankers from their very own financial institution to debate extra sophisticated banking issues. The neighborhood bankers function on a rotational foundation, with a distinct banking supplier accessible every day of the week.
In complete, there are plans to create 38 of those hubs, however solely 4 have opened to date. These are positioned in Brixham (Devon), Cambuslang (South Lanarkshire), Cottingham (East Using of Yorkshire) and Rochford (Essex).
The ATM community operator, Hyperlink, has now really helpful areas for a further 9 banking hubs:
Barnoldswick in LancashireClay Cross in DerbyshireEarlestown on MerseysideHeywood in Better ManchesterHorwich in Better ManchesterOakham within the East MidlandsShoreham-by-Sea in West SussexStapleford in NottinghamshireWatton in Norfolk
“Entry to money and private banking providers stays necessary to tens of millions of individuals within the UK. Not everybody can or can go digital simply but, so we’re excited to announce new cash providers to assist these communities,” mentioned Hyperlink CEO John Howells.
Hyperlink additionally introduced the deliberate introduction of money deposit machines in Keswick in Cumbria, Ripley in Derbyshire, Littlehampton in West Sussex, Whitstable in Kent, Dagenham in Better London and Colwyn Bay in Clywd.
There are plans for 38 new deposit providers within the UK, the place customers and companies can deposit cash with out visiting a financial institution department.
What’s a sofa pod?
Barclays has introduced will probably be launching a collection of “banking pods” in response to altering buyer wants.
The pods are purpose-built, semi-permanent constructions in areas resembling procuring malls and retail parks. They supply a devoted personal area and could be moved relying on demand.
The pods are completely different from the shared banking hubs talked about above because the pods are for Barclays prospects solely.
Following the success of the financial institution’s first in St Austell, a minimum of 10 pods will probably be rolled out throughout the UK by summer time 2023.
The financial institution has but to disclose the areas for the pods, however says some areas will probably be with out an present Barclays presence.
As well as, six electrical supply vans will probably be added to Barclays’ present fleet of 10, enabling the financial institution to succeed in prospects in distant areas.
The financial institution additionally mentioned it’s increasing its scheme the place it really works with native councils and communities to rearrange attendance in locations resembling city halls and libraries.
“Our new banking pods and neighborhood pop-ups assist us tailor our private assist to every location, together with digital abilities assist. In areas the place we shut a department, we’ll preserve our presence in that neighborhood by offering an alternate face-to-face resolution,” mentioned Jo Mayer, Head of Each day Banking at Barclays UK.
“They should be rolled out a lot sooner”
Critics say banking hubs, pods, vans, pop-ups and different forms of short-term branches all should be launched extra shortly to communities battling an absence of banking providers.
Jenny Ross, editor of Which? Cash, mentioned: “Money stays massively necessary to a major minority who use it to pay for each day requirements and monitor their bills as the price of residing persists, however banks like Barclays proceed to shut tons of of branches, making it tougher for folks to deposit and withdraw it.
“Proposals to plug gaps created by financial institution department closures might be a part of the answer to guard entry to money, however they should be rolled out in a lot better numbers and far sooner for folks to reap the advantages. make it really feel.”
That is in accordance with analysis by Which? final 12 months, almost 1 / 4 of free-to-use ATMs have disappeared since 2018, whereas 4,685 financial institution branches have closed – which means virtually half of UK financial institution branches have closed since 2015.
My financial institution department is closed. What are my choices?
In case your native department is closed, examine to see if there is a shared banking hub close to you or in case your banking supplier has neighborhood popups. Along with Barclays, TSB additionally runs pop-ups for its prospects, resembling in libraries, city halls and church buildings.
When you’ve got a put up workplace close to you, you could possibly use banking providers resembling money withdrawals, money and examine deposits, and checking your account steadiness. Halifax, Lloyds, TSB, Allied Irish Financial institution, AIB, Financial institution of Eire, Financial institution of Scotland and Virgin Cash prospects can entry the complete vary of guide and automatic banking providers at a put up workplace. Different prospects might solely have the ability to use sure providers.
A useful desk on the PostNL web site reveals which private providers and which enterprise providers can be found to which financial institution prospects.
Another choice if you wish to withdraw cash and there’s no financial institution department, put up workplace or ATM close to you is to get cashback at a retailer. Some supermarkets and comfort shops supply cashback at their checkouts together with your debit card – and you do not have to purchase something. Sort your zip code into the Hyperlink web site to view your choices.
Lastly, you’ll be able to swap to a different financial institution or constructing society that does have an area department (though there is no assure that will not shut both).
In the event you change checking accounts, you will discover one which fits you higher, for instance with cashback on accounts, an interest-free overdraft and/or an honest financial savings fee. Watch out for banks that supply a switching bonus, as this implies you are additionally bagging some free money.
