ANOTHER MP in the Bradford district has raised concerns about physical bank branches closing at an "alarming rate" - and called for changes to ensure residents and businesses can always access cash.
Philip Davies, Conservative MP for Shipley, said it was unacceptable that people living in so-called 'bank branch deserts' were forced to travel long distances, often miles out of their area, to withdraw their own money or pay it in.
Mr Davies is now urging the Financial Conduct Authority (FCA) to relax rules to allow ATM provider LINK to step in and create more banking hubs in communities.
According to national consumer group Which?, banks and building societies have closed at an alarming rate in recent years - with more than 5,800 branches shutting since 2015.
Concerns have been expressed about a number of areas in the Bradford district losing their physical bank and building society branches, with several communities no longer having access to the services they once enjoyed.
'People need to be able to access cash'
A consultation into accessing cash is currently underway and one proposal put forward by the FCA would mean LINK could intervene when the second to last bank in an area closes.
But Mr Davies said this proposal did not go far enough and he wanted more measures put in place.
He said: "LINK should be able to operate on a case-by-case basis and look at the bigger picture in an area and intervene earlier if they think it is needed, rather than having to wait until the second to last bank shuts.
"Each area has differing needs and a one-size-fits-all model is not good enough.
"We do not live in a cashless society and people need to be able to access cash.
"Many people only want to shop with cash and that is their right - and something I fully support."
Mr Davies is one of 57 cross party MPs who today called on chief executive of the FCA, Nikhil Rathi, to act.
In an open letter to the finance boss, the MPs said where it was obvious more branches were going to close in a particular area, LINK should be able to recommend a banking hub - even if branches currently remained.
The letter reads: "Ultimately if a community with six banks loses three of these in a few years, it is reasonable to assume that the remaining three may close in the few years that follow.
"If the direction of travel is clear, why not intervene while the services are still present in a community, preventing a situation with no access to cash?"
A spokesperson for the FCA told the Telegraph & Argus: "We know that, while there is an increasing shift to digital payments, over three million consumers still rely on cash - particularly people who may be in vulnerable circumstances - as well as many small businesses.
"We welcome all feedback on our proposals to protect access to cash, and will consider them carefully. We will publish our final rules later in 2024."
What is a banking hub?
A banking hub is like a traditional bank branch but is available to everyone.
The hubs have a counter service where customers of all main banks can withdraw and deposit cash, make bill payments and carry our regular banking transactions.
The facilities have private spaces where people can see someone from their own bank on a rotating basis - so there will be staff from different banks available on different days.
As previously reported by the Telegraph & Argus, Bradford South Labour MP Judith Cummins is holding talks to establish a banking hub in her area.
In her constituency, the closure of the last bank branch in 2022 means many people must now travel three miles to access in-person banking.
In light of this, Ms Cummins has been working with LINK to examine the challenges residents face accessing financial services in the Bradford South patch.
Following a review requested by Ms Cummins, LINK has agreed to visit Queensbury to complete an assessment to see if a local banking hub is suitable.
Meanwhile, it has been confirmed that Otley will get a banking hub this year.
The hub, which will be based in Kirkgate, was recommended by LINK following the announcement of the closure of Otley’s last remaining bank branch.
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