A group of British MPs has sought government intervention to stop further bank branch closures in the UK.
The Treasury Select Committee, a select committee of the House of Commons, has published a report stating the UK is at risk to become a cashless society soon.
Go deeper with GlobalData
The report added that it will have significant impact on the elderly and poorer sections of the society who largely depend on branches and ATMs.
UK bank branch closures
According to the Financial Times, more than half of bank branches in the UK closed in the last 30 years. The number of closures accelerated with the increase in digital banking and contactless payments.
Last year, the number of branches shuttered last year amounted to 682.
The situation is further grim in the rural regions and towns, leaving many of them without high end branches, according to the report.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataTreasury Select Committee chair Nicky Morgan was quoted by the publication as saying: “Financial inclusion of vulnerable customers . . . should be of the utmost priority for financial services providers, the government and financial regulators.”
Accordingly, the MPs suggested expansion of mobile branches to address the issue. They also recommended using of community buildings as well as sharing same premises between competitors to retain physical banking presence.
The report also highlighted using the local post offices to provide banking services, where the lenders closed their branches. However, they argued that this should not be seen as a replacement as the post offices only offer basic services.
It also called for restructuring UK’s cash infrastructure to ensure availability of cash among people.
