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Why restrict it to the financially excluded?
In its report published today the Treasury Committee recommends that the Financial Inclusion Task Force explores with the high street banks innovative models such as shared branching to overcome the geographical financial exclusion of vulnerable groups resulting from the closure of local bank branches.
Derek French, Director of the Campaign for Community Banking Services (CCBS) welcomed the recommendation and said:
“Shared branching can be of value to communities all over Britain which see their local bank branches close. It should be a matter of urgency to introduce it in order to serve the needs of the elderly, disabled people and small businesses as well as all those on low incomes”.
The Committee recognised the slow-down in bank closures 2001-2005 but the evidence is that closures are now firmly back on the agenda and the banks have not used the time to properly trial the most wanted alternative.
The report also mentions mobile banking but this option has low applicability in England & Wales but could have a limited role within the shared branching model.
Contact: : Derek French 01582 764760 www.communitybanking.org.uk
Notes for Editors:
- CCBS is a coalition of 29 national organisations concerned about bank branch closure, financial exclusion and community sustainability.
- Shared branches provide a common counter service to customers of all banks: the model is proven in operation in the US and in UK studies. It can be profitable for banks: see Financial Times 17 November 2006
- 3700 branches closed in the last 10 years; 300 since Jan 2005
- Over 1000 communities have one bank only and 500 have only two.
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