22 August 2007

Lose Free Banking or Local Branches: There is Another Way

In its annual report on the reduction in bank branch networks, published today, the Campaign for Community Banking Services (CCBS) highlights the growing threat to local branches from the pressure on retail banking profits of the penalty charges and payment protection insurance expected outcomes.

On the other hand, extending the idea of shared branching beyond the obvious candidates of vulnerable communities already suffering closures to the replacement of more individually branded branches by multi-bank banking centres is capable of increasing efficiency and producing substantial cost savings to alleviate an unwelcome return to charges for all.

Derek French  Hon Director of CCBS said:

“Banking Centres and Community Banks offer an alternative to closing local branches or imposing charges on everyone.  The banks have a golden opportunity to start down that route now with immediate benefits to sustainability of communities, financial inclusion and reduction of carbon emissions.”

Contact: Derek French  01582 764760

Notes for Editors

1. CCBS is a coalition of 25 national organisations concerned about bank branch closure, financial exclusion, community sustainability and the environment. Details: www.communitybanking.org.uk
2. ‘Branch Network Reduction: 2007 Report’ is published today.  Over 400 branches have closed since January 2005
3. In addition to details of shared branching models on the website, see Derek French’s article “High Street Banks Can Profit by Sharing Branches” 17-11-06 -copy on CCBS website under Articles.
4. The Treasury’s Financial Inclusion Taskforce is currently considering shared branching following a Select Committee recommendation.
5. A quarter of retail bank profits are at risk from the sources mentioned.