How Many Banking Hubs Does The UK Really Need?

By the end of 2025, there will be almost no UK towns or villages with populations of under 35,000 that will have a bank branch or bank ATM. 

That’s around 7000 communities. 

So how can they all have a local financial services footprint the local residents and businesses require?

The Payment Choice Alliance has reviewed the cash access needs of communities with populations of under 35,000.

Let’s start by segmenting that 7000 figure.

There are just over 1200 ( 1208 to be precise) communities which have a population between 35,000 and 5000.

Nearly all of these will have had bank branches and bank ATMs before the branch closure programme started.

They ALL merit a Banking Hub, to include a 24/7 ATM, which must accept all banks deposits and recycle deposited cash to allow it to be dispensed to the public.

However, a Banking Hub will not be enough in such communities to guarantee reasonable cash access. Two additional cash access points are required, one of which can be a Post Office with both an ATM and counter cash services.

Turning to communities with populations of between 5000 and 2000, there are around 1100 in this grouping.

Such communities require at least two separate cash access points, one of which must be 24/7. A Post Office with an ATM can be one of these access points. Any ATMs must accept all banks deposits and recycle deposited cash to allow it to be dispensed to the public.

For communities with a population below 2000 - there are around 5000 in this grouping-  a Post Office with a 24/7 ATM accepting all bank deposits and recycling cash may be considered reasonable.

In the absence of a suitable Post Office, it would be necessary to have alternative cash access, one of which should be 24/7.

In all 7000 communities covered by the above analysis, free “cash back” offered by businesses would be expected to augment - but not substitute for - Banking Hubs, ATM services and post offices.

To sum up the position for the 7000 UK communities with populations of under 35,000:

• Around 1200 Banking Hubs are required.
• All 7000 communities require 24/7 ATM services, which must be ATMs accepting all bank deposits and recycling the deposited cash to allow it to be dispensed to the public.
• Post Offices with suitable ATMs can be part of the solution to the cash access needs.
• Free “Cash Back” offered by local businesses can augment but not substitute for the Banking Hubs, ATM and Post Office services.
• If there is a Building Society branch in any of the 7000 communities with populations of under 35,000, those branches can be considered as supplementing the cash access requirements detailed above.

To meet these requirements, Cash Access UK , which is responsible for the provision of Banking Hubs has so far “promised” 200 Banking Hubs - but not necessarily with 24/7 ATM services - by the end of 2025.

The new Government has spoken about the potential for 350 Banking Hubs. No commitments have been offered on 24/7 Cash Recycling ATMs or free “Cash Back”. In short, what has so far been promised is wholly inadequate.

The Payment Choice Alliance will be working tirelessly to ensure hard pressed communities around the UK get the Banking Hubs , ATMs and other cash access points the British public want and need.