Community Bank Closures — House of Commons, 2018-02-08
Topic: Domestic Commerce
Michelle Emma May Elizabeth Donelan (Conservative, Centre-right): I commend my hon. Friend the Member for Hazel Grove (Mr Wragg) and the hon. Member for Stoke-on-Trent North (Ruth Smeeth) for securing the debate My constituency is formed of four market towns and a lot of villages, so it will be no surprise to Members that we have seen a number of bank closures in the past few years. In fact, there are no branches left at all in Bradford on Avon and Corsham. Locally, a key part of the problem has been insufficient transport infrastructure to get people into those towns, particularly from surrounding villages such as Neston, and an above-average ageing population Nationally, the banking industry estimates that branch visits have fallen by roughly a third since 2011. I understand and recognise that banks are businesses and that branch closures happen for commercial reasons. Fundamentally, advances in technology—online and mobile banking—have significantly reduced demand. Cheques are still the main reason customers go into a branch, but cheque usage has declined severely—by 13% between 2014 and 2015 alone. Things have changed: I remember back in the day my Mum paying in the supermarket with a cheque and cheque guarantee card. Now she uses Apple Pay on her iPhone To explain the decrease in demand, we must consider the purpose of banks. For some people, as Members have suggested, banks are more than a normal service. They are a part of the community, offering people a personal relationship and an opportunity to chat. They can prevent loneliness. That is why, for some, closures are not just an inconvenience or a sting: they can actually hurt. I know that that has been the sentiment in my constituency That view of banks, however, is decreasing, especially among younger generations, hence the need to specifically help and consider the elderly when banks close. I must note at this point, as other Members have, that provisions are already available to reduce the impact of bank closures. The industry’s access to banking standard, launched in 2017, makes a commitment to provide information about branch closures, along with options locally to continue to access banking services. It also includes specialist assistance to customers who need specific help. Importantly, it commits to providing a minimum of three months’ notice of branch closures. However, I do not think that three months is long enough for people to change their habits or prepare themselves. I ask the Minister to call on the banks to operate a six-month policy, which would be fairer and more adequate. It is vital that when banks make decisions on closures they review the transport network and infrastructure, and ensure that provision is available so that banks are accessible in the area Mobile banking is a perfect example of a halfway house, costing only 19% of a physical branch. RBS group and Lloyds have built a large network of mobile banks across the country, and HSBC has just started to do the same. They help in areas where there is no accessible alternative provision, and they can be used as transitional arrangements to enable people to adapt and have more time.