Asked by: Baroness O'Neill of Bexley (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what steps they are taking, if any, to encourage high street banks to work together to establish banking hubs to protect access to cash.
Answered by Baroness Vere of Norbiton - Parliamentary Secretary (HM Treasury)
The government recognises that cash continues to be used by millions of people across the UK, including those who may be in vulnerable groups.
The government legislated through the Financial Services and Markets Act 2023 to establish a new legislative framework to protect access to cash. This establishes the Financial Conduct Authority (FCA) as the lead regulator for access to cash and provides it with responsibility and powers to seek to ensure reasonable provision of cash withdrawal and deposit facilities.
In the context of this legislation, the financial services sector is working together to develop and provide shared services, such as Banking Hubs. While Banking Hubs are a commercial initiative, the government encourages a swift rollout of these services. Cash Access UK, which delivers these services on behalf of participating retail banks, expects to deliver Banking Hub services in 30 communities by the end of the year, and open at least a further 60 Hubs in 2024.