Jamie Stone has called for stronger protections for face to face banking services, warning that access to cash alone is not enough for communities across the Highlands.
Speaking during a parliamentary debate on banking hubs, Stone argued that while the hubs help tackle problems around cash access following widespread bank closures, they cannot fully replace the services once provided by traditional high street branches.
The debate focused on the need for more banking hubs across the North of Scotland as communities continue dealing with the loss of local bank branches.
Banking hubs, developed through Cash Access UK, provide shared spaces where customers can access cash services and meet representatives from different banks operating on a rotating weekly basis.
However, Stone said the hubs are limited in what they can actually deal with, particularly in more complex situations involving fraud, account management or personal banking support.
During the debate he highlighted concerns that online banking and limited access hubs are failing to replace the face to face support many customers still rely upon.
Stone has now met with the Treasury to discuss changes to the Financial Services and Markets Act 2023 which would create a legal obligation for major banking groups to maintain access to banking services alongside the existing legal protections around access to cash.
Commenting afterwards, Stone said:
“I am glad this issue is gaining attention across the House and I am glad to hear of many success stories with regards to the implementation of banking hubs.
“They are an excellent service in place of the countless bank closures we have seen across the country in recent years.
“However, when it comes to bank closures, we need to really hit the nail on the head with the solution and that solution need to guarantee access to banking, not just access to cash.
“Two years ago, the Financial Conduct Authority introduced new rules to ensure reasonable access to cash withdrawal.
“We now need to take this further.
“I want to see the Government step up and introduce a statutory obligation for banks to uphold their face to face banking services.
“We need to update the Financial Services and Markets Act 2023 urgently.”
The issue continues to resonate strongly across rural Scotland where communities have seen repeated closures of local bank branches over recent years.
For many older residents, small businesses and vulnerable customers, the loss of face to face banking remains a major concern despite the continued growth of online banking services.
