MS, Cabinet Secretary for Social
Justice, Trefnydd and Chief Whip: Bank branch closures continue
to affect communities across Wales, and we regularly see reports
in the media, usually with a focus on concerns about the impact
on access to cash and a reduction in face-to-face banking
services.
While usage trends show some renewed demand for cash, especially
among those using cash to support budgeting, the broad trend is
downward. However, it is essential that we preserve access across
Wales ensuring inclusivity of services.
Although ‘financial services' is a reserved matter, with
responsibility resting with the UK Government, financial
inclusion is a key priority for Welsh Government.
I am pleased that the UK Government has pledged to establish at
least 350 banking hubs across the UK. The network of these across
Wales continues to expand - there are twelve shared banking hubs
now open in Wales with three further in the process of being
established, these will be in Chepstow, Gorseinon and Holyhead.
These banking hubs are a lifeline for local communities that have
lost their final bank branch.
The hub already operating in Porthcawl is one of the busiest
across the UK. The hub in Treorchy is also unique in Wales as it
is located within a supermarket rather than a post office or
standalone premises. A pilot is also being trialled at the
Treorchy hub through the presence of a Customer Liaison Officer,
providing general assistance and signposting to customers and
providing a safe space for customers to connect with their bank,
either via the Community Banker or telephony.
Of course, post offices play a crucial role in
providing cash access services, allowing customers to pay in
cash, deposit cheques and withdraw cash from bank accounts. More
must be done to raise awareness of the role post offices have in
enabling access to cash. Other key mitigations in development
include enhanced post office counters, money at the till
initiative which supports free cash back at retail outlets,
mobile deposit and withdrawal units, multi-bank super ATM's and
credit union facilities supporting face to face services in
communities.
Unique solutions are also being established in communities across
Wales, with partnerships in place providing alternative banking
access, for example Barclays Local, operating from community
spaces, such as Tredomen Business Park, and Monmouthshire
Building Society's Community Connect counters, which I was very
pleased to visit in May this year. These provide great examples
of how banks and building societies are finding new ways to
support people in the heart of communities.
All these initiatives share the same goal – maintaining inclusive
access and deposit services for people and businesses that rely
on physical banking facilities.
My officials continue to work closely with LINK (the UK wide cash
access network) and Cash Access UK to safeguard free access to
cash across Wales.
LINK leads on assessing the need for new banking services (ATMS,
shared banking hubs with and without ATMs) following every
bank branch closure announced and where the last branch in any
town closes and can commission replacement services where
required.
Regulatory safeguards now require banks to assess the impact of
closures on access to cash and to report on support for their
vulnerable customer base via the Consumer Duty.
My officials also meet regularly with the FCA, who are
responsible for regulating the Consumer Duty and it's rules that
obligate banks to assess local cash access gaps before closing
any services. If gaps are identified, banks must offer
alternatives such as shared hubs, ensuring access to a local post
office branch or mobile branches.
Individuals in communities can also request an assessment of
banking services by LINK - LINK / Request Access to Cash
Review.
As Cabinet Secretary for Social Justice, Trefnydd and Chief
Whip I am concerned about the impact of bank closures on those
who either cannot or choose not to bank online and welcome the
roll out of alternative local banking solutions.
In March 2025, I attended a second successful ‘Banking in Welsh
Communities' event, hosted by Welsh Government and held in
partnership with FinTech Wales and with the support of the
Principality Building Society. Attendees included businesses
working on financial products, financial regulators, mainstream
banks, credit unions, building societies as well as third and
voluntary sector organisations.
The objective of these events is to support key discussions that
focus on how we can form links, collaborate, and adapt the
support provided to individuals—including those facing
significant barriers to financial inclusion—as well as to
businesses and communities, so that this support addresses the
rapid changes taking place in high street banking. I remain
committed to assisting communities to access alternative banking
services and to support this a third event will take place in
early 2026.
