Banking Hubs: Rural and Post-Industrial Communities

Ann Davies Excerpts

Tuesday 24th February 2026 Westminster Hall

[Sir Desmond Swayne (in the Chair)]

I will call Ann Davies to move the motion and I will then call the Minister to respond. I remind other Members that they may make a speech only with prior permission from the mover of the motion and the Minister. As no other Member has approached the Minister, nobody else will be speaking, unless it is through an intervention. There will not be an opportunity for the Member in charge to wind up.

[Ann Davies (Caerfyrddin) (PC)]

I beg to move,

That this House has considered banking hubs in rural and post-industrial communities.

It is a pleasure to serve under your chairmanship, Sir Desmond. It is unfortunate really that this is a 30-minute debate. So many people have been in touch to make interventions or speeches, including the right hon. Member for South Holland and The Deepings (Sir John Hayes) and my right hon. Friend the Member for Dwyfor Meirionnydd (Liz Saville Roberts), but as you mentioned, Sir Desmond, it is impossible to fit everybody in.

I am pleased to lead the debate on this important topic. Access to cash and banking services is a pressing issue in rural and post-industrial communities. I hope to outline why we desperately need to increase the availability of services through banking hubs in those areas.

[Jim Shannon (Strangford) (DUP)]

Will the hon. Lady give way?

[Ann Davies]

I will. This is one of three, Sir Desmond.

[Jim Shannon]

I will just say that so many people are here because the hon. Lady has brought up a subject matter that is worth more than 30 minutes of debate. Does she agree that the only goals that banks seem to have are bigger dividends and more profit? When they close branches there is a dramatic effect on rural life in her constituency and in mine. Is it not time for banks to look not at profit, but at the people and customers that they should be supporting?

[Ann Davies]

I totally agree, and I will come on to that later. In 2006, cash accounted for 62% of all payments in the UK. It now accounts for around 14%, with some forecasts taking it down to 6% in 2031. However, if we look beyond those percentages, we can see that cash still plays a vital role in people’s lives. For many, cash is indeed king.

New figures from Link, which accounts for 77% of the UK’s entire ATM network transactions, show that cash continues to be central to how millions of people manage their money. In 2025, £76 billion was withdrawn from Link ATMs, in 1.27 billion transactions recorded across the year. Link notes:

“While ATM use naturally evolves as more people choose digital payments…cash remains a trusted and widely used option.”

Link data shows that the most popular places in which to use cash remain convenience stores, supermarkets and payments between friends and families.

[Dr Roz Savage (South Cotswolds) (LD)]

Will the hon. Lady give way?

--- Later in debate ---

[Ann Davies]

I will. This is number two.

[Dr Savage]

In my rural constituency, mobile banking hubs, including mobile vans and post offices, are absolutely vital, especially for older constituents who still prefer to use cash, and for rural businesses that need to pay in cash. Recently, services in Hullavington and Minety were suspended, which was a real problem. Does the hon. Lady agree that in rural communities, mobile banking vans are not a luxury, but an essential service, not just for the people using cash but for the businesses and pubs where cash payments are made?

[Ann Davies]

Absolutely. Unfortunately, as of December last year, those post office vans no longer accept cheques. Some people of a certain generation still use cheques, but those cannot now be paid in by using a post office van, as we have in our village. Someone must physically go to a bank to pay in a cheque, which makes it very difficult for the elderly, especially given that in my area we do not have public transport either.

Removing local banking services risks deepening financial exclusion and placing additional strain on already vulnerable adults. Despite cash and in-person banking still being integral to many communities across the UK, they are becoming harder and harder to access. That is demonstrated by the number of bank closures across Wales. As the Welsh Affairs Committee has noted, the number of bank and building society branches fell from 695 in 2012 to 435 in 2022.

[Torcuil Crichton (Na h-Eileanan an Iar) (Lab)]

rose—

[Adrian Ramsay (Waveney Valley) (Green)]

rose—

[Ann Davies]

I promised the hon. Member for Waveney Valley that he could intervene on me, and that will be my final intervention. I am so sorry.

[Adrian Ramsay]

I was waiting for the appropriate point to pre-empt the fact that the hon. Lady is clearly talking about banking hubs in rural areas. In my constituency of Waveney Valley, the market town of Bungay has been told that it cannot have a banking hub because there is already one seven miles away in Harleston, but of course in rural areas, proximity does not necessarily mean accessibility when it comes to travel times or public transport access. Does the hon. Lady agree that, in determining the criteria for banking hubs, real accessibility in rural areas needs to be accounted for, and there needs to be flexibility in the system to achieve that?

[Ann Davies]

Absolutely. The data is there for all.

The closures disproportionately impact less populated areas, as the distance to travel to bank branches is greater. For instance, data from 2008 to 2018 show that the greatest increases in travel distance to the nearest bank branch were in Montgomeryshire, Clwyd South, Arfon, Dwyfor Meirionnydd, and Brecon and Radnorshire. Those rural and less populated areas also tend to have older populations and less reliable internet, and experience the unique nature of rural poverty.

[Torcuil Crichton]

Will the hon. Lady give way?

[Ann Davies]

I am so sorry, but I am going to finish.

Restricting access to cash also affects many of those living in rural and post-industrial areas. As the Financial Conduct Authority has noted, digitally excluded older people, people in poor health, those with lower financial resilience and those with lower financial capability depend more on cash. We have seen that play out in my constituency, where we have recently experienced the closure of the last bank in the town of Ammanford—a Lloyds Bank on Quay Street. The closure will leave Ammanford—a town with an area population of 23,709—without a full-service bank branch. It will impact not only the town itself but the surrounding communities of Brynamman, Glanamman, Tycroes, Llandybie, Betws and the wider Amman valley.

The decision demonstrates a worrying lack of understanding of the needs of rural and post-industrial communities. For many, online banking is not an option. For example, broadband coverage in Carmarthen is significantly below national standards. Gigabit in Carmarthenshire is 41% compared with 78% in the UK. Superfast broadband is 85% compared with 96% in the UK. Those figures demonstrate that large parts of the county, including Ammanford and its surrounding villages, lack access to the high-speed internet that is required for secure and consistent digital banking. In practice, that means that online banking is unreliable or inaccessible for many households. Mobile banking apps do not function properly, especially in areas with poor signal and slow connections.

Digital alternatives cannot replace in-person services, especially for vulnerable groups such as older adults, those with disabilities and people managing complex financial needs. A significant proportion of residents are elderly, vulnerable or without access to transport, and the prospect of travelling long distances to the nearest branch is unrealistic and unjust.

I have had many constituents contact me to express their deep concern about the closure of the Lloyds branch. One constituent told me:

“We really desperately need this facility now. I don’t think any consideration has been given to the disabled, elderly, or even younger people who cannot travel to other towns. Although I understand the Post Office will absorb some customers, it does not provide all banking needs.”

He continued:

“I understand why the banks have to close some branches, but Lloyds’ support in the past has been invaluable to this area. With a brain-injured partner, it is nearly impossible to travel to Gorseinon. This would be a major trip causing unnecessary distress and anxiety for him; disabled parking in Gorseinon doesn’t meet his needs either.”

Cash has a social value, too. Another constituent said:

“I’m old school and still like to have cash—giving my grandchild pocket money, giving tips if I go out, taxis—the list could go on.”

It is clear that cash does not just facilitate economic exchange; it creates bonds and ties within communities, an aspect that is important to smaller and rural areas.

Where do we go from here? The Federation of Small Businesses Wales has said:

“While it is unrealistic to expect a return to high street banks on every street, it is important that new models are further developed—such as banking hubs—to ensure that these services are available locally.”

Banking hubs are a key alternative to communities that have lost access to bank and building society branches. They offer easy access to face-to-face cash and banking in the communities that have lost their bank branches.

I welcome that the Government have pledged to establish at least 350 banking hubs across the UK. In Wales, there are 12 shared banking hubs, with more in the process of being set up in Gorseinon and Caergybi—Holyhead. However, I note that none are in my constituency of Caerfyrddin—not one.

The Financial Services and Markets Act 2023 gave the Financial Conduct Authority responsibility for maintaining cash deposit and withdrawal access, although not wider banking services. The FCA’s rules came into force in September 2024. Those rules require banks not to close their services in communities until they have carried out an assessment showing that the closure would not impact withdrawal and deposit services in that area. Those assessments are conducted by Link.

While such a safeguard is welcome, the process itself seems to overlook rural and post-industrial areas. It does not allow for discretion to be applied to consider the needs of those communities. For instance, in the case of Ammanford, Link assessed that there was no need for additional services like a banking hub, given that Ammanford did not meet the population threshold of 10,000 people living near the high street. It said that Ammanford had 7,444 adults living nearby, which is still a significant number, but 23,709 people live in that surround. As we know, in post-industrial areas, the town merges into the villages—or the villages merge into the town.

Residents have made it clear that they are finding it incredibly challenging losing their only banking facility. A petition is being circulated in response to the decision, and it has already gathered hundreds of signatures—I urge all in the Chamber to share my online petition. I urge Link to engage with local stakeholders, including businesses, councillors and residents, to ensure that the assessment reflects actual community needs, including by establishing a banking hub in the town of Ammanford.

Can the Minister set out how the Government can accelerate the establishment of banking hubs in rural and post-industrial communities as part of their plans? What recent assessments have been made of the adequacy of the cash access review process to account for the unique needs of those communities? Banking hubs are a lifeline for communities that are already under strain. We need prudent policymaking in this area from the Government, so that constituents like mine are not overlooked for such important services. Diolch yn fawr, Cadeirydd.