The banks have to do better – hubs are still as rare as hens’ teeth

IN THEORY, banking hubs are a fine idea. In practice, they remain as rare as hens’ teeth despite a lot of hot air blown by those responsible for introducing them on to our high streets. Indeed, if you believed the PR, you would think the country was awash with hubs. Sadly not. Just two are up and running. Moral of this tale? Never trust PR.

Sometimes referred to as community banks, these hubs are ‘banks of banks’ – branches run by an independent operator such as the Post Office, but which customers of all the big banking brands can use.

On specific days, customers can even talk to staff from their own bank on issues troubling them – unusual given the propensity of big banks to turn their own branches into soulless spaces where machines rule.

Hubs are especially useful in communities which have lost all their banks. Sadly, outside the cities and major towns, bankless communities are becoming the norm rather than the exception as banks ruthlessly cull branches (486 closure announcements so far this year).

LATE last year, we were told five spanking new hubs would be launched in 2022, adding to the two up and running in Rochford, Essex and Cambuslang, South Lanarkshire. So far, not one of these five has seen the light of day. Another 22 have been announced, but have yet to get off the ground.

A few days ago, after another glowing PR announcement on hubs, I asked for a progress report. Of the five hubs scheduled to launch this year, only one (Brixham, Devon) will be open before Big Ben chimes in the New Year.

A hub in Cottingham, East Yorkshire (not one of the five), should also open its doors next month, with another in Troon, South Ayrshire, following early in 2023. A score of one out of five would be deemed a failure in a school test. I trust the Financial Conduct Authority will be telling those involved (the banks) to up their game.

In August this year, it told The Mail on Sunday: ‘Firms need to pick up the pace and deliver more banking hubs. We expect this to be done as a priority.’ Given not one new hub has been opened since it opined, I think it’s time it gave the banks an almighty rollicking.