The closure of bank branches across the United Kingdom is creating "banking deserts," leaving vulnerable customers, including those with learning disabilities, struggling to access essential financial services. Caroline Voaden, Liberal Democrat MP for South Devon, is advocating for relaxed criteria for the establishment of "banking hubs" to address the growing problem.
In Voaden's constituency, which serves 90,000 people, only one bank branch remains open after the closure of the Lloyds branch in Totnes in January. This closure has significantly impacted residents like 33-year-old Sean Trimming, who has minor learning difficulties. Trimming previously relied on the Totnes branch for face-to-face assistance with his banking needs, benefiting from staff who understood his communication challenges and helped protect him from scams. His father, Leo Trimming, explained that Sean trusted the bank staff and could discuss financial matters with them more readily than with his parents.
Since the branch's closure, Sean has lost this vital support system and is now more dependent on his parents. His nearest bank is now approximately ten miles away, requiring a 40-minute bus journey each way, a mode of transport Sean uses as he does not drive. Leo Trimming expressed concern about his son's future, stating, "One day we're going to be too old or unable to help, and then I'm not sure what happens to Sean then." He added that Sean has been denied the same level of service accessible to others due to his communication and confidence levels with online or telephone banking.
Nationally, figures from consumer watchdog Which? show that 6,609 bank and building society branches have closed between January 2015 and December 2024. Many customers are now forced to travel significant distances for in-person banking or rely on remote services, often encountering chatbots instead of human assistance.
A Lloyds spokesperson acknowledged the closures and stated that the bank identifies customers who may need additional support. They offer services like "trusted person cards" and have held events with the Post Office to inform customers about available alternatives. The bank also noted that less than a quarter of its vulnerable customers banked exclusively in-branch and that they offered to meet with MP Caroline Voaden.
Voaden argues that the current rules for granting banking hubs are "absurdly narrow." A banking hub is a shared physical space offering face-to-face services for multiple banks, often with staff from individual banks present on specific days. These hubs are funded by banks and operated by the Post Office. Totnes was denied a banking hub, Voaden explained, because it had four ATMs and the nearest bank was deemed to be within 30 minutes by public transport, a calculation that overlooks the needs of those living in areas with no bus service.
She contends that the criteria focus too heavily on cash access rather than essential face-to-face banking and do not reflect the reality of public transport availability for many.
Voaden hopes that the government will consider the public's desire for local physical bank branches, with 76% reportedly wanting such access. She believes that enhanced banking hubs providing comprehensive in-person services on behalf of all major banks are achievable with sufficient political will.