Ministers have begun an independent examination of access to face-to-face banking services across the UK, alongside plans to introduce powers that would allow intervention where local provision is under threat.
The step comes amid a marked shift in how retail banking is used, with more customers managing their finances online.
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Banks and building societies have adjusted their branch networks in response to those changes in behaviour, but the reduction in physical sites may be causing difficulties for people who still depend on in-person services.
The review has been commissioned by Economic Secretary to the Treasury Lucy Rigby and will be led by Richard Lloyd, the former Which? director and former member of the Financial Conduct Authority board.
Rigby said: “Banking services are a really important part of lives and communities, and it’s critical we can all access what we need – whether through local banking services or strong community-based alternatives like credit unions.
“We are supporting industry’s roll out of banking hubs, but we also need a clear picture of where communities are still losing out. This independent Review will show us where the problems are and what further action may be required – and we will move quickly to legislate where the evidence shows it is needed.”
Its purpose is to collect evidence on the practical effects of branch closures, determine which groups are most affected, and consider whether further measures are needed to preserve access to banking services.
The work is linked to the Financial Services and Markets Bill announced in the King’s Speech. The Treasury has said it intends to include a power in the legislation so it can respond quickly if the evidence indicates action is needed on access to banking.
Lloyd is due to deliver his report and recommendations to the Government by October 2026. He has previously served as a non-executive director and interim Chair of the FCA, and as Executive Director of Which?
The Bill is also set to advance some of the credit union common bond changes announced in March, with the aim of making it easier for credit unions in Great Britain to widen their membership and expand.
The Government said these changes will help more people gain access to affordable credit and secure savings options, while supporting community-based financial services.
