In its submission to the Financial Inclusion Inquiry being conducted by the Treasury Select Committee, the Campaign for Community Banking Services (CCBS) calls for the banks to pilot shared branching in deprived inner-city areas where branches are being closed.

Derek French, the Campaign’s Director said:

“Shared branching not only delivers local access to banking services but in deprived communities it can open the door to affordable credit and money advice through partnerships with credit unions and counselling services".

The Treasury Committee is urged to recognise the serious damage to the financial inclusion agenda if the main high street banks are allowed to continue deserting areas of highest deprivation without any government sanction.

NOTES TO EDITORS

1. CCBS is a coalition of 28 national organisations concerned about bank branch closures, financial exclusion and community sustainability. Details can be found on www.communitybanking.org.uk.
2. Written submissions to the Treasury Committee Inquiry were required by 15 January; first public session 24 January.
3. Shared branching provides a common counter service to customers of all banks: it has been academically validated in UK and operates in the US
4. Closures by HSBC, Yorkshire and Clydesdale Banks in 2005 included branches in deprived areas of Birmingham ,Bradford ,Glasgow, Leeds, Liverpool, Manchester, Nottingham, Sheffield as well as poorer and remote rural communities. Other banks are expected to resume closures in the next two years.
5. 577 urban communities have only 1 bank branch remaining (CCBS research 2003).

Contact

Derek French, Hon Director CCBS Tel 01582 764760.