CashNews.co
Customers and small businesses are poised to reap the benefits of new regulations set to be implemented tomorrow (Wednesday, September 18). The Financial Conduct Authority (FCA) is introducing rules that will compel banks and building societies to assess whether local communities have sufficient access to cash services.
If a community is found wanting, banks will be expected to provide additional services, including branches and ATMs..
The new regulations, which come into effect from Wednesday, will require banks and building societies to respond to residents, local organisations, and other groups in a local community if they request an assessment to identify any gaps in local access to cash services.
The FCA has confirmed that these gaps could be filled with various measures, including Post Office facilities. It will be the responsibility of the banks themselves to deliver any necessary additional services to bridge the gap.
The FCA’s rules also stipulate that there should be no unreasonable delays in providing solutions to gaps in cash services. If frequent violations of the rules are discovered, the FCA has stated it will use its powers to rectify them.
In areas where there is only one bank branch, the rules will mandate them to establish a banking hub and ensure it is active and functional before closing the doors of that branch. This should help guarantee that no local community is left without cash services available through its bank or building society.
Banking hubs, managed by the Post Office, are shared centres that offer a variety of services typically available at local bank branches, such as cashing cheques and withdrawing money.
These are the 14 banks who will have to comply with the new regulations:
- AIB Group (UK) plc
- Bank of Ireland (UK) plc
- Bank of Scotland plc (including Halifax)
- Clydesdale Bank plc (Virgin Money)
- HSBC UK Bank plc
- Lloyds Bank plc
- National Westminster Bank plc (including Ulster Bank)
- Nationwide Building Society
- Northern Bank Limited (Danish)
- Santander UK plc
- The Co-operative Bank plc
- Lloyds Bank plc
- The Royal Bank of Scotland plc
- TSB Bank plc
A total of 1,358 banks and building society branches closed down between June 2021 and June 2023, according to FCA figures. Another 69 branches are closing in September, including branches of Halifax, Royal Bank of Scotland (RBS), Lloyds, NatWest and Barclays.