New rules for 14 banks including Natwest, Lloyds and Santander to come into effect this week
The Financial Conduct Authority (FCA) will introduce new rules that dictate banks and building societies to examine whether local communities have adequate access to cash services
by Kieran Isgin · ChronicleLiveCustomers and small businesses are poised to reap the benefits of new regulations set to be implemented this week. 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 to be underserved, banks are expected to provide additional services, including branches and ATMs..
From Wednesday (September 18), new regulations 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, reports the Manchester Evening News.
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 operational before closing the branch. This measure is designed to prevent any local community from experiencing a period without access to cash services via their bank or building society.
Banking hubs, managed by the Post Office, offer a variety of services typically available at local bank branches, such as cash withdrawals and cheque cashing.
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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 (Danske)
- Santander UK plc
- The Co-operative Bank plc
- Lloyds Bank plc
- The Royal Bank of Scotland plc
- TSB Bank plc
FCA figures reveal that between June 2021 and June 2023, a total of 1,358 bank and building society branches were shut down. An additional 69 branches, including those of Halifax, Royal Bank of Scotland (RBS), Lloyds, NatWest and Barclays, are set to close in September.