The British Bankers’ Association, on behalf of the major high street banks, has vetoed a planning study which would have ensured local access to banking services for millions and protected the 1500 communities currently at risk of bank closures.

In response to a strong business case and a very strong social case put to the banking industry by the Campaign for Community Banking Services (CCBS) on March 7 for unbranded shared branches , the banks have said they don’t want to progress the idea which has worked successfully in the US since 1992, which has been academically validated in the UK as operationally feasible and financially viable and for which the technology is already available.

This stance demonstrates the UK’s banking industry’s blinkered approach and unwillingness to try profitable solutions, able to help sustain communities and generate shareholder value.

CCBS believes the reasons given by the banks to be largely irrelevant or ill thought through.* It is particularly disappointed that the banks have not sought to discuss the issues with consumer and small business representatives before reaching their conclusion. Hon Director of CCBS, Derek French, says:

“We can now look forward to the loss of many more local bank branches, and the knock-on effect that will close other community retail services, without any suitable alternative in place. The banking industry has turned its back on a profitable solution to the problem through sheer narrow mindedness. It is now up to government to act to protect the pensioners, small businesses and those on lower incomes who will struggle to access banking services”.

The CCBS coalition of 28 national charities and consumer/small business organisations is willing to continue the dialogue with the banks on this issue of such importance to customers, communities and shareholders.

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NOTES TO EDITORS

* See attached reasons and responses.

1. Nearly 6000 bank branches have closed since 1990 leaving nearly 1000 communities bankless.
2. 1087 communities have only one bank; 545 have only two remaining: CCBS research 2003.
3. Details of the CCBS coalition are at : www.communitybanking.org.uk
4. A ‘shared banking’ pilot scheme carried out by 4 banks in 2002 had little relevance to the current proposal but its results included some positive indicators.