The way people access banking services has changed significantly in recent years. Access to these services is provided through a range of channels, including different in-person models as well as digital channels, which many customers benefit from. Many find that the ease and convenience of remote banking and digital innovations allow them to manage their finances more easily. However, some still need or prefer access to in-person banking services, including those who are vulnerable, less digitally confident, or who rely on face-to-face support to manage their finances.
It is for this reason that the Government committed in our manifesto to working with the financial services industry on the roll out of 350 banking hubs by the end of this Parliament. Over 275 hubs have been announced so far, and more than 230 are already open.
However, the Government recognise that the location of banking hubs is based upon a legislative framework which protects access to cash, as opposed to access to banking services. Specifically, the Financial Services and Markets Act 2023 provides a framework to safeguard cash withdrawal and deposit facilities, and the Financial Conduct Authority has responsibility and powers to ensure the reasonable provision of such services. There are currently no equivalent statutory protections specifically for access to in-person banking services more broadly.
While the Government recognise it is neither possible nor reflective of customer behaviour to reverse the long-term trend towards digital banking, the Government are committed to ensuring that customers, including those who are vulnerable or less digitally able, retain sufficient access to essential banking services in line with their needs. HM Treasury has therefore commissioned an independent review into access to banking services to assess the impact of changes in the provision of in-person banking services across the United Kingdom. The review will consider the scale and nature of any detriment to consumers arising from a lack of access to banking services, including impacts on vulnerable groups. The review will be chaired by Richard Lloyd OBE, chair of IPSA and former interim chair of the Financial Conduct Authority (FCA).
The review will also seek to examine which groups of customers need or require access to in-person banking services.
It will seek input from market participants and consumer representatives, and Government and regulators may also be consulted. Evidence collected by the review will inform future decisions on whether further action is needed. The review will conclude in October 2026 and the chair will provide a report and recommendations to the Government.
In addition to this, the Financial Services and Markets Bill will include provisions to enable the Government to take further action in respect of this issue, including implementation of any recommendations arising from the access to banking services review, should the evidence demonstrate that this is necessary. This will ensure that Ministers have the ability to act in a timely and proportionate way in future, following the conclusion of the review.
The Government will consider the review’s findings carefully and will update the House in due course.
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