UK charity calls for banks and authorities to hurry up the introduction of physical banking hubs as analysis reveals hundreds of thousands of older people don’t financial institution on-line
By
Karl Flinders, Chief reporter and senior editor EMEA
Published: 04 May 2023 12:21
Age UK needs banks to speed up the creation of physical banking hubs as analysis exhibits 40% of over-65s don’t financial institution on-line.
As excessive avenue banks proceed to shutter branches at a speedy price, the charity for the outdated has warned of “banking deserts” that might see over 4 million Brits prone to monetary exclusion.
Research commissioned by the charity and carried out by Ipsos discovered that 4 in 10 over-65s – over 4 million people – don’t handle their cash on-line, and that 75% of the-over 65s – over seven million people – wish to perform not less than one banking job in individual. It additionally discovered that over three million people within the age group really feel uncomfortable with on-line banking.
Banks’ bulletins of department closures are inevitably accompanied by statements that clients are shifting to digital channels and that footfall in branches is dropping quickly.
Banks have been closing branches and redirecting investments into digital channels for years, and the Covid-19 pandemic – which compelled clients on-line – accelerated the take-up of digital companies and discount in department use.
Recent rounds of financial institution department closures have seen Lloyds Banking Group, NatWest and Barclays shutter branches.
ATM community supplier LINK is coordinating banking hubs, the place customers from completely different banks can deposit and withdraw money. There are plans for 38 banking hubs, and the identical variety of companies for people to make deposits.
Age UK is asking for the safety of physical banking companies and an accelerated roll-out of those shared banking hubs in areas “where bank branches are fast withering away”.
Caroline Abrahams, charity director at Age UK, stated: “We need to face up to the fact that huge numbers of older people, the ‘oldest old’ especially, are not banking online. In addition, our research also shows that even older people who do bank online often want the ability to talk to a bank employee in the flesh about some kind of transaction.”
“Our concern is that there can be too long a delay between bank branches shutting down in an area and a new banking hub becoming operational” Caroline Abrahams, Age UK
She stated the charity’s analysis findings display the massive and persevering with demand for face-to-face banking companies among the many outdated, and demanded that banks reply, as a result of “otherwise, they are effectively disenfranchising millions who are willing and able to manage their finances – just not online”.
Abrahams added that there was hope that shared banking hubs may fill the void left by financial institution department closures, however known as for an acceleration of their institution. “Our concern is that there can be too long a delay between bank branches shutting down in an area and a new banking hub becoming operational,” she stated.
She acknowledged that it takes time to ascertain a banking hub and get it going, however recommended communities must be given time for a hub to be established earlier than branches shut.
TSB and Barclays are introducing separate initiatives to offer alternate options for clients affected by department closures.
Barclays launched a challenge to create “banking pods” the place banking companies could be accessed. The financial institution describes the banking pods as “purpose-built, semi-permanent structures in sites such as shopping centres and retail parks”.
The financial institution stated not less than 10 will likely be arrange within the UK by summer time 2023. To attain clients in distant places, it additionally plans for six extra electrical automobile banking vans to be added to its current fleet of 10.
In December 2022, TSB stated it was piloting its personal banking pods, which can provide banking companies in buying centres and supply another supply of banking companies as extra financial institution branches shut.
It is working three pilots of its pods in North London, Wigan and Luton. They use expertise, recognized as BankHive, from ATM supplier NoteMachine to attach clients with TSB to hold out their banking.
Customers will be capable of entry money and TSB will quickly add performance to allow them to deposit cash. They can even be capable of get help from advisers on actions such as making funds, accessing services and products, or organising digital banking.
In May final yr, the federal government stated it could legislate for the Financial Conduct Authority (FCA) to guarantee banks enable customers to entry money and make deposits inside an affordable distance from their houses. “To support the FCA, the government will in due course set out its expectations for a reasonable distance for people to travel when depositing and withdrawing cash,” stated a press release from the Treasury on the time.
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