Community bank could have 30 branches across Wales
THE Welsh Government is working with a building society to accelerate the establishment and roll-out of a community bank which could see 30 banks branches set up across the nation.
Which? estimates that by the end of 2022, only 277 Bank and Building Society sites will remain in Wales as branch after branch closes – with some communities losing all their banking services.
To address this Economy Minister Vaughan Gething, has announced the formation of Banc Cambria with Monmouthshire Building Society and Cambria Cydfuddiannol Ltd to address the market failure in relation to the gap in provision, the effectiveness and the quality of banking services in Wales.
It aims to provide everyday full retail banking services in communities across Wales by 2023. They said Banc Cambria cannot replace the increasing number of branches closed by the High Street Banks.
But it aims to establish around 30 new outlets over the next decade – with a focus on communities that have lost provision.
It will need to secure regulatory approval from the Prudential Regulation Authority and the Financial Conduct
Authority and with required banking reserves and start-up costs and secure funding running into tens of millions of pounds.
Economy Minister Vaughan Gething said: “Our vision for the Community Bank for Wales is one that is based on the mutual model, owned by, and run for, the benefit of its members, rather than the maximisation of profit for
shareholders.
“It will be a modern, full service community bank, headquartered in Wales, providing access to bilingual products and services, through a range of channels including digital, online and in-branch.
“The Bank will facilitate local investment and enhance community wealth-building, recirculating savings into loans and preventing capital drain.
“We very much hope it will provide a positive impact on communities and high streets across Wales, improving access to everyday banking services for all citizens regardless of income or wealth, as well as for small businesses across the whole of Wales.”
CEO of Monmouthshire Building Society, Will Carroll said: “Whilst this project is in its early stages, the Society is delighted to be working with Welsh Government to bring to life the aspiration of a community bank for Wales.
“We believe that delivering a community bank will support the Society’s purpose to bring more relevant services to more members in more places in Wales.”
CCL’s Chair, Alex Bird said: “The Monmouthshire are a perfect fit to deliver Banc Cambria. As a modern mutual their focus is on supporting communities and delivering value to members.
“Working with the team at Monmouthshire, it is clear they are a brand to trust in the marketplace and we are confident that the values we have developed will be in safe hands with them.”