As high streets across the UK witness the rapid disappearance of bank branches, Cornwall is set to lose five more this year, exacerbating concerns over access to physical banking services. This development is part of a wider trend, with approximately 250 banks slated for closure nationwide in 2024, leaving many communities without vital financial services.
Unprecedented Wave of Closures
The banking sector’s shift towards digital services has accelerated branch closures, with Cornwall experiencing significant impacts. Already, the Halifax branch on 13 Market Jew Street, Penzance, has shut its doors, and four more – including Lloyds in Saltash and Bodmin, as well as Barclays in Wadebridge – are on the closing list for April and June. These closures, particularly in Saltash and Bodmin, will leave residents without any local banking options, highlighting the growing issue of financial exclusion in rural and semi-rural areas.
Community Impact and Response
Age UK has voiced concern over the closures, emphasizing the challenges faced by older people and those without access to online banking. The charity is advocating for the halt of closures until more banking hubs are operational, to ensure communities retain access to essential financial services. Meanwhile, LINK’s initiative to assess the impact of each closure and recommend new banking hubs is a step towards mitigating the effects on vulnerable customers and small businesses. However, with over 70% of people still relying on cash transactions, the need for physical banking services remains critical.
Looking Ahead
The transition to digital banking, while beneficial for some, poses significant challenges for communities losing their last bank branches. The introduction of banking hubs, such as the one in Forres, offers a glimmer of hope, providing a collaborative solution that brings multiple banks together under one roof. Yet, as closures continue to outpace the opening of new hubs, the future of high street banking and the communities it serves hangs in the balance.
