Bank Branch Closures

Debate between Angela Crawley and Anum Qaisar

Wednesday 16th March 2022 Commons Chamber

[Ms Qaisar]

I agree with my hon. Friend.

I was speaking about the impact on local businesses, charities and trusts. Can the Minister confirm what the Government are doing to ensure the safety of staff and volunteers? This is an important point, because they are often having to travel a distance when their nearest bank branch has closed. Although that is a commercial decision, we cannot have our constituents put in a precarious situation when carrying cash at the end of the day or after a fundraising event.

At the heart of this, banks tell us that the decision to close a branch is driven by customer behaviour and demand, but I would argue that banks are pushing this change. Speaking to branch staff and customers to examine the trends does not necessarily provide the full context of what is happening in a particular area. Does the Minister agree that the UK Government should consider introducing an independent body to conduct independent impact assessments, including of the impact on a local community, before a bank closes a branch? Such a localised assessment could ensure that decisions made in a local area are reflective of the needs of the local community.

[Angela Crawley (Lanark and Hamilton East) (SNP)]

Lanark serves a much wider rural area. Access to mobile banking and different types of accessibility is so important when rural communities are left without access to banking, as people are often told that their bank is 20 miles away, inaccessible and unavailable to most.

[Ms Qaisar]

I thank my hon. Friend for her intervention, and Members will not be surprised to hear that I completely agree with what she has just stated.

At the onset of the covid pandemic so many businesses across the country literally switched overnight to cashless payment systems. The concerns about the move towards a cashless society have been raised numerous times by Members from across this House. However, the shift to digital banking has only been accelerated by the ongoing pandemic. While we continue to move away from cash and towards the digital era of banking, it is vital that we ensure that no one is left behind. I mean no disrespect to my colleagues, especially those on the SNP Benches, but there is a wee bit of an age difference between myself and some of the others. I am stereotypical of those young people who are more likely to use digital wallets, smartphone apps and online banking. Recent statistics show us that about 76% of people in the UK use some form of digital money management, and this trend is increasing, especially in the younger sections of society, with more than 50% of 25 to 34-year-olds willing to go completely digital when handling their finances. That does not translate throughout older demographics and more vulnerable groups in society.