Today’s research from Nottingham University confirms the disproportionate suffering of bank branch closures by inner city deprived communities and sends a message which a government committed to reducing financial exclusion cannot ignore.

Derek French, Hon Director of the Campaign for Community Banking Services (CCBS) says:

“It is disgraceful that a government committed to reducing financial exclusion can stand by and allow the banks to abandon the weakest in society without considering any alternatives. CCBS calls on ministers to direct the banks to trial shared branching in deprived areas; if the costs are shared, there is no reason why banks should not be able to deliver a profitable service even in poorer areas.

With branch closures firmly back on the agenda, analysis of the very latest closure patterns evidences that deprived areas, as highlighted in the academic research, remain a significant target of banks.

Notes for 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. The Changing Geography of British Bank and Building Society Networks 1995-2003 is available today from Nottingham University 0115 846 8092 .
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 significant closures in the next two years. Examples available on request.
5. 1087 communities (581 urban) have only one bank branch remaining (CCBS research 2003).

Contact

Derek French, Hon Director CCBS Tel 01582 764760