Well, unlike the idiots who were allowed to wreck our banking system, I am a qualified banker, who previously worked in the building society sector, and I’ve campaigned against the closures of both bank and mutual building society branches.
Speaking here in November 2013, after HSBC announced the closure of branches in Llangollen, Conwy and Beaumaris, I stated that widespread concerns had been raised by constituents regarding the impact this will have on them, the wellbeing of the businesses in their towns, their communities, and the thousands of tourists who visit the area. They’re afraid that rural areas are taking the brunt and believe that we need to take a longer term, truly customer-focused approach. However, HSBC told me that low customer usage meant that the bank was unable to reverse its decision.
Last June, we heard that the village bank that starred in a NatWest television advert pledging to keep every branch open as long as it was the last in the community was being shut down. We learned this month that Barclays is to shut its branch in Buckley, Flintshire, with accounts moved to Mold—a 6-mile round trip for customers. It’s the third bank to announce a closure in the town over the last six months, leaving just one branch.
Following HSBC’s announcement of the proposed closure of branches in Chirk and Ruabon, Simon Baynes, the prospective Welsh Conservative candidate for Clwyd South, carried out community bank surveys and held public meetings in both communities. And, accompanied by two county councillors, he then met HSBC and put questions to them, raised by the public. These included: ‘Please be specific about the factors in your decision to close; customers have trouble understanding the decision, given that there are often queues in these two bank branches.’ ‘Doesn’t this decision betray a lack of forethought?’ In practice, it’s very difficult for many customers to go to Wrexham, particularly shops that need to cash up takings, and given that there are few cashiers now in the Wrexham branch. ‘Surely, this closure is discrimination against people without the internet, who cannot drive.’ ‘Doesn’t HSBC take into account the knock-on effect of closure on the surrounding areas and businesses, as well as the two towns themselves?’ I give way.
Precisely. And, as they said, ‘Why doesn’t HSBC care more about the effect on the elderly of these branch closures, and the cost of getting to other banks?’ And, ‘What links do you have’, they said, ‘with community banking models, and credit unions, and can you help such institutions, given your departure?’ However, I understand they said they had no intention of changing their decision.
So, let us heed the key survey findings. People feel strongly they need a bank. Footfall is significant in both banks. They are important for older people, those without transport, shopkeepers and small businesses. Chirk has 0.5 million tourists a year and banks play a role in that, and the post office will not be able to fill the void of bank closures.
With digital banking decimating the use of traditional services the UK Government and the British Bankers Association entered an agreement early last year that commits banks to working with local communities to establish the impact of the branch closure prior to the closure, finding suitable alternative provision to suit individual communities and putting satisfactory alternative banking services in place before a branch is closed. In May 2015, the access to banking protocol came into effect, outlining consultation and community engagement requirements prior to a branch closing and requiring an assessment of the impact of any proposed closure on the wider community including businesses. Last August’s letter from the UK Government to the British Bankers Association outlined their position stating:
‘Branch closures continue to be a matter of concern for consumers and small businesses in affected communities…it is important that closure decisions are made responsibly, and that efforts are made to provide adequate alternative banking arrangements reflecting local circumstances—including small business needs—before a branch closes.’
That’s why the BBA and the Post Office started to agree a standard set of services to be made available to bank customers at post office counters and why that remains vital. The letter also asks the BBA for the industry’s view on the viability of shared branch arrangements. The operation of the protocol is due to be independently reviewed in summer 2016—this summer. So, let this debate help inform and influence that review. Thank you.