Member Article

Banks should ‘share branches’ say FPB

The UK’s biggest banks should consider sharing branches to solve the problem of closures, according to the Forum of Private Business (FPB).

The FPB has joined forces with the Campaign for Community Banking Services (CCBS), and is now working to alleviate the problem of local branch closures. Since 1990, 7,555 banks - or 44% of local branches - have closed across the UK.

Many small and medium businesses already report poor levels of service and difficulties even contacting their bank representatives, who are often and indifferent to their needs. Now Phil Orford, the chief executive of the FPB is calling on the Government to take action.

He commented: “Regardless of the Project Merlin lending targets there is a serious risk that the impact of the alarming decline in local bank branches is being missed.

“The Government should act without delay to address the situation and pressure banks to genuinely think locally and consider branch sharing as an option. It works in elsewhere so why not in the UK?

“Competition between banks is clearly important, but branch sharing shouldn’t be seen as an anathema to it – it is difficult to see how reducing local services can possibly make a business more competitive.”

466 urban communities across the UK are only served by one bank branch, which causes an enormous inconvenience to individuals who are not members of that bank.

CCBS Director Derek French said: “Branches in vulnerable urban and rural communities are disappearing as the banks interpret government silence on the issue as a licence to escalate closures.

“A proven and cost-effective sharing model is available and action to implement is needed now before it is too late.”

The CCBS data shows that the number of rural ‘dual bank’ communities is down to 208. At present, 238 urban communities are served by just two banks, 106 of these being within a mile of an alternative bank.

While those qualifying as ‘last bank in town’ are currently protected to some degree by non closure pledges, the pressure to close in dual and multi bank communities, in order to avoid being last, has increased.

The FPB is now calling for bank infrastructure be be improved, as part of its Get Britain Training Campaign

This was posted in Bdaily's Members' News section by Ruth Mitchell .