Community Bank Closures — House of Commons, 2018-02-08
Topic: Domestic Commerce
Michelle Emma May Elizabeth Donelan (Conservative, Centre-right): I do not believe that mobile banks are the answer; I am proposing that potentially they are a part of the solution. I agree on the point about cold weather. That is a very valid and worthy consideration I have worked locally with Lloyds to reduce the impact and to manage the transition of the loss of branches in Bradford on Avon and Corsham. I am pleased to say that we have a provisional agreement for a mobile bank trial in Corsham. Madam Deputy Speaker, I am sure you will agree with me that the case for such a trial is just as valid in Bradford on Avon. I am sure the Minister, as a local Wiltshire MP, also agrees Turning to the impact of bank branch closures, each case is different in every circumstance. When severe, it can suggest, alongside closure, a lack of investment in training and support for older and vulnerable people. That is why I reiterate that a three-month notice period is not long enough. It takes time to build some people’s confidence in the security of digital banking. Alongside Lloyds bank and Barclays, I have run three fraud workshops, which were heavily attended, particularly by the elderly community. Support to vulnerable residents and the elderly is crucial. It is important to remember that about 4 million people—mainly the elderly—are not online at all. However, we must not write off older people as incapable of using the internet. We must support and manage them, and give them the tools and skills to make progress. More than 600,000 people aged over 80 already have online banking. They put me to shame, as I joined only last year Another stumbling block to digital banking can be deprivation, which can render people unable to own a computer or a smartphone. Mobile blackspots and patchy internet services are both common in the villages in my constituency. Banks should ensure that an alternative option is accessible, such as mobile banking or sufficient public transport to the nearest branch, and I again make the point that Bradford on Avon really needs mobile banking Post offices are not the answer, but they are part of the solution and can play an essential role. Our post offices have been struggling for years, but incorporating banking into their services is proving to increase their footfall and helping to engage people in their services again. The Post Office currently offers basic banking services to many bank customers and is expanding that to business customers. As has been noted, awareness is the key problem, but it is also about changing consumers’ habits. I was pleased that at the autumn Budget of 2017, the Treasury wrote to the Post Office and UK Finance to stress the importance of raising public awareness. I would like to hear the result of that from the Minister In conclusion, it is important that we do not resist technology, but that we accept and embrace change to enable progress, grow our economy and compete on the international stage. However, I want to be realistic. I believe that it is inevitable that all branches will eventually close. The supply of them has reduced by 60% in my lifetime, so I think that we should encourage a sustainable hub model to emerge—a one-stop shop—where post office and banking facilities can be offered, as well as debt advice and potentially even a citizens advice bureau. That will help to safeguard our high streets. The transition period is so important, along with the support available. Banks need to lead the way in training and supporting people who are currently unable to support themselves through their digital skills. We must also encourage the roll-out of mobile banking I hope I have outlined today that the banking world is changing, but that there is a process whereby we can improve the transition, so that everybody in society can continue to embrace technology. We must support our community.