Banks may share branches to help keep cash flowing

BANKS could share branches for the first time, in a pilot to boost access to cash.

Eight towns and villages have been chosen to take part in the scheme which will help address the challenges of maintaining free access to cash.

Some of the locations have seen all their banks close in recent years or have faced a dwindling number of free ATMS. The communities will now work with the banking industry to draw up “sustainable” solutions to keep cash viable. Around two million people still mostly use cash in their day-to-day lives.

Among the options understood to be under consideration are shared bank branches, ways to improve digital skills and mobile ATMS.

A handful of banks launched shared branches for business customers last year in a very small number of locations, while the Treasury Committee has said that shared “banking hubs” could be established in Post Offices with trained staff.

A previous pilot of shared bank branches was abandoned in 2003 after a review found that while they were valued by a small number of customers, they were unlikely to be viable in the long term.

Natalie Ceeney, who chaired the Access to Cash Review, said: “We know digital payments don’t work for everyone, and for many cash remains essential. But the world is changing – we can’t just magic back our old bank branch and ATM infrastructure.”

John Glen, the City minister, said: “I welcome the announcement of the locations of the pilots, at a time when our communities mean more than ever.”