Highland MP Jamie Stone has expressed urgent concerns regarding the accessibility of banking services in rural communities during a meeting with Lucy Rigby, the UK’s Economic Secretary to the Treasury. The discussion, which took place on [insert date], focused on the implications of recent bank closures in areas like Dingwall, leaving residents with limited options for in-person banking.
Many constituents now face lengthy journeys, with some required to travel up to 100 miles to reach banking facilities. While Stone acknowledged alternative services, such as banking hubs and post offices, he emphasized that these do not adequately support individuals lacking digital banking skills or those affected by fraud who need personal assistance.
Stone highlighted the difficulties faced by small business owners, who often find themselves waiting in long lines at post offices to deposit significant cash amounts. He argued that the current arrangements are inadequate and do not meet the needs of rural communities. Following the meeting, Stone stated, “Access to cash and in-person banking is a necessity, not a luxury. Too many of my constituents, particularly older residents and small businesses, are being left behind.”
The MP has been proactive in advocating for change. In November 2023, he urged the Prime Minister to amend the Financial Services and Markets Act 2023 to include provisions that ensure vulnerable populations retain access to banking services. He has called for banks to uphold their duty to provide face-to-face banking to customers who depend on it.
In correspondence with the Financial Conduct Authority (FCA), Stone requested a reassessment of the existing policy on cash access. The FCA responded, noting that the Financial Services and Markets Act 2023 grants them new powers to ensure reasonable cash service provisions, which will take effect in September 2024. These new regulations require banks and building societies designated by the Treasury to evaluate and address significant gaps in cash access.
Despite these advancements, the current legislation does not extend the FCA’s authority to include broader banking services, which limits their ability to address the needs identified by Stone. During the recent meeting, the Minister acknowledged that access to banking in rural areas is a genuine concern and indicated that the Financial Services and Markets Act is under review.
Rigby expressed her preference for first enhancing the existing banking hubs, suggesting improvements such as extended opening hours before considering any legislative changes. Stone welcomed this recognition, noting that the current assessment methods for banking hub locations often fail to reflect the realities of rural life, particularly regarding public transport accessibility.
In light of these discussions, Stone plans to submit casework to reinforce his proposals aimed at improving banking access for rural communities. He remains committed to ensuring that residents are not isolated from essential financial services, stating, “I will continue pressing for practical improvements to ensure rural communities are not cut off from basic financial services.”
As the government evaluates possible reforms, the outcome of these discussions could significantly impact how banking services are delivered in rural areas, potentially shaping the financial landscape for many residents.
