Lloyds’ Nunn, who runs the country’s largest network of branches with 1,100 sites, said he had no concerns about the broad changes set to be rolled out.
“We’ve been working closely with the Treasury and with the regulator on the access to cash points,” he said. “We already have a very community-focused and detailed assessment that we do alongside Link and openly with the regulator when we look at branches.
“That’s a very detailed process that engages with the community and customers, and then is gone through with independent oversight from Link and the regulator.”
Still, Link’s role as a clearing house for branch closures has also been questioned given its ties to the banking industry.
While the investigations are undertaken by Link, the rulebook it uses to make the assessments is set by the banking industry.
The low rate of bank closures leading to alternative banking hubs has prompted fears about independence.
“[Link] has an incentive to keep the banks happy,” said Youel. “Link may not be well equipped to give an independent assessment. Arguably it could be left to the FCA.”
Quinn rejected the idea that Link is unable to offer an independent view on bank closures.
“We have absolutely no conflict of interest in this,” he said. “We are independent and not for profit. Every decision we take is in the consumer interest.”
Under its new rules, the FCA plans to collect its own data from firms on branch closures, giving more independent oversight.
The agency’s consultation said this would help it challenge banks if the regulator felt they were not acting appropriately.
Positive Money’s Youel says: “It’s not necessarily the case that we need to stop banks closing their branches at all. We just need to make sure there are alternative provisions. Banking hubs are the way to go.”
