A call for more banking hubs has been backed by the city’s Green Party representative as banks continue to shut across the UK,
More than three in every five bank branches across the UK have closed their doors permanently since 2015, according to consumer magazine Which?.
In Carlisle, the Rosehill Barclays branch closed in 2021, and it was feared that the English Street Virgin Money bank would also close, but the company was later bought by Nationwide, securing its place.
Further bank closures across the county have affected many residents who rely on cash and cheque services.
A banking hub was opened in Maryport last year by Cash Access UK and then MP Mark Jenkinson as a solution for the issue.
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Banking hubs are one location in which several banks can operate, often one on a certain day, to serve multiple customers.
The research found 6,161 branches have been shut across the UK since 2015, representing over three-fifths (62 per cent) of the banking network.
Which? said the impact on local communities can be devastating, with some of the most vulnerable members of society, such as those living with disabilities or on lower incomes, reliant on branches and either unable or unwilling to make the switch to banking digitally.
New rules overseen by the Financial Conduct Authority (FCA) regulator came into effect last week which mean banks will need to give more consideration to a local community’s cash needs before deciding to close a branch.
The watchdog will require firms to check whether additional services would be needed should a branch shut its doors or an ATM be switched off – and keep facilities open until the additional cash services are available.
New FCA rules also give residents more say over what their community’s cash needs are.
People can request an assessment of whether there are gaps in local cash access and where significant gaps are found, providers will have to deliver reasonable additional cash services.
Which? said given the number of branches that have closed in recent years, it wants to see many more hubs opened.
Major banks have recently committed to opening 350 hubs by 2029.
Sam Richardson, deputy editor of Which? Money, said: “Bank branch closures can have severe impacts on local communities, including on those who still want to use cash.
“New rules to protect free access to cash have been hard won and should make banks think twice about shutting branches without adequate replacements.
“Banking hubs will play a key role in replacing shuttered branches, but their rollout remains far too slow for consumers to feel their benefits.
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“The Government must hold banks’ feet to the fire to ensure the commitments they’ve made to set up 350 hubs by 2029 are met – and should be prepared to review the target upwards if necessary.”
A UK Finance spokesperson said: “The banking industry is committed to ensuring there is continued access to cash for those who need it.
“With fewer people visiting bank branches on a regular basis, firms have to make difficult decisions about maintaining their branches.
“Significant ongoing investment is being made to deliver this commitment, including shared banking hubs.
“There is also the option to do a lot of day-to-day banking at Post Office branches across the country.
“If you are concerned about your local bank branch closing, please contact them and they will help you find the best alternative for your needs.”
Tom Adams from Carlisle and District Green Party said banking hubs are an ‘absolute necessity’ to continue cash access and to provide face-to-face help for more intensive banking needs like loan applications, something of particular importance for the elderly and people in rural areas.
“The Government should require that banks ensure there is a branch presence in every town and major village.
“Banking should not be remote from society.
“All banks operate under the terms of a licence from the Bank of England, so it would be an easy matter to stipulate this kind of cooperation from all banking providers.
“What’s more, this would cost the government absolutely nothing,” Mr Adams said, adding that it’s a ‘no-brainer’.
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