JEFF PRESTRIDGE: Banking hub plan is too little, too late

As foreshadowed in our personal finance pages two weeks ago, the country’s high street banks have now agreed to do a little bit more than they have previously done to preserve nationwide access to cash.

Although the announcement was hardly earth-shattering when it came – and it certainly won’t stop the culling of hundreds more bank branches in the coming months – it represents a step in the right direction.

A small step for mankind? Of course not. A small step towards greater financial inclusion? Hopefully, yes.

The marvellous Lord Holmes says the deal struck between the banks and key consumer groups is a victory for The Mail on Sunday’s longstanding Keep Our Cash Campaign.

It’s kind of him to say so, but given I am a glass half-empty person, I tend not to agree. I believe the banks, as usual, have got off lightly.

The key part of the announcement relates to shared bank branches – banking hubs as they are now commonly referred to. It is a concept we have championed for more than 20 years, assisted by the tireless Derek French of the Campaign for Community Banking Services.

Although the CCBS has long died a death, French has continued to wave the flag enthusiastically for banking hubs.

Under the agreement orchestrated by Natalie Ceeney in her role as chair of the Access to Cash Action Group (set up by banking association UK Finance to look at ways of keeping cash on the high street), five new hubs will be set up next year.

This is on top of two already up and running. They will be one-stop branches which customers of all the big banks will be able to use to carry out routine banking transactions. They will also be small business friendly.

While great news for the communities concerned – Acton (West London), Brixham (Devon), Carnoustie (Angus), Knaresborough (North Yorkshire) and Syston (Leicestershire) – their number is hugely disappointing.

It’s nowhere near the 50 French believes should be set up as a matter of urgency – in towns big enough to support a hub and where either all the banks have already jumped ship or only one hangs on for dear life.

Five also represents a mere scratching of the surface when compared to the 200 hubs (minimum) or 400 (maximum) French argues will be needed in five years’ time after all the major banks have trimmed their branch networks to the bone.

‘Far too little, far too late,’ is French’s verdict – and I agree.

While Ceeney has done an amazing job in getting the banks to agree to anything that might compromise their ability to make profits in the future, I’m not falling for the spin.

Last week’s announcement does not mark a ‘pivotal moment’ in the battle to preserve access to cash on the high street as the accompanying press release boldly stated. Nor does it give the green light for the rolling out of banking hubs nationwide.

Although the Cash Action Group promises ‘further’ services to protect cash on the high street, I would be surprised if, by this time next year, we have more than a dozen banking hubs up and running nationwide.

Maybe, if the Government comes up with supporting legislation that requires banks to set up hubs in communities deemed worthy of one by cash machine network Link, that could change things. But without such legislative clout, my fear is that the banks will do no more than pay lip service to the banking hub idea. 

LV= bosses should step down

I find it incredible that Liverpool Victoria’s chairman and chief executive are still in situ after failing to convince members (customers) that a sale of the business to Bain Capital was in their best interests.

As Jim Royle of The Royle Family would have said: ‘Best interests? My a**e.’

Alan Cook (chairman) and Mark Hartigan (chief executive) should have walked as soon as they knew they had lost the argument. To them I say: ‘Do the honourable thing, walk and enjoy Christmas.’

To my readers, I will simply say: ‘Happy Christmas.’ As The Real Thing once sang: ‘You to me are everything.’