Review will explore impact of bank branch closures – Daily Business

Thousands of branches have been shut across the UK (pic: DB Media Services)

An inquiry has been launched into the impact of banks closing more than 6,700 branches in the past decade and whether they should be compelled to introduce more face‑to‑face services.

Richard Lloyd, a former executive director at the consumer group Which?, will gather evidence for the Access to Banking Review, which aims to report back to the Treasury by October.

It follows the announcement of the Enhancing Financial Services Bill in the King’s Speech, which the Treasury said would include powers to “act swiftly if the evidence supports intervention on access to banking services”.

Figures from Which? reveal that 6,719 branches have shut since 2015 and  the opening of 234 hubs, shared with Post Offices, since 2021 have not filled the gap in service provision. It was a Labour party manifesto commitment to open 350 by 2029.

Lucy Rigby, economic secretary to the Treasury, said: “We are supporting industry’s rollout of banking hubs, but we also need a clear picture of where communities are still losing out.

“This independent review will show us where the problems are and what further action may be required — and we will move quickly to legislate where the evidence shows it is needed.”

Mr Lloyd said: “It’s important to take stock of the impact that the big shift to digital services has already had, and to understand the need for access to in-person banking in the future.

“I hope to hear from as wide a range of views as possible and welcome the Treasury’s commitment to taking action, should this independent review find evidence that new legislation is needed.”

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