New banking hubs announced to help cash access – are they enough?

Around 30 communities should benefit from banking hub services by Christmas with a further 60 to open in next year, Cash Access UK has confirmed.

The group gave an update on the status of banking hubs last week after it was revealed Nationwide would be withdrawing from the scheme.

It's hoped that new banking hubs will plug the gap left by bank branch and ATM closures in communities, providing a way for people to withdraw and deposit cash, as well as access everyday banking services. But just seven out of the 90 pledged are operational so far. 

Here, Which? reveals the locations of the new banking hubs, plus other measures that are in place to protect cash across the UK.

What are banking hubs?

Banking hubs involve banking providers working together to offer basic cash services in communities where bank branches and ATMs have closed, offering spaces for people to speak to their own bank. 

They are owned by Cash Access UK and operated by the Post Office.

The hubs feature a counter service operated by staff from the Post Office, where customers of almost any bank can withdraw and deposit cash, make bill payments and carry out other regular banking transactions. 

There will also be private spaces where customers can speak to someone from their own bank for advice and support about more complex issues. 

Banks provide staff on rotation, so there should be trained specialists from different banks available on different days. 

• Find out more: is your local bank branch closing?

Banking hub locations

Here are the locations of all the banking hub locations announced by Link; however, only seven of these have opened so far. 

Why has Nationwide withdrawn from Cash Access UK?

Nationwide said it will serve its customers through its own branches from January and will be withdrawing from Cash Access UK.

A spokesman told Which?: 'We are investing in and have the largest branch network in the UK. Our approach is very different to those who have significantly reduced branches. We remain committed to ensuring our customers have access to cash and face-to-face services on the high street, which is why we’ve renewed our branch promise until at least 2026.

'We hope banking hubs thrive across the country by providing services to underbanked communities.'

Nationwide is currently the provider with the most branches remaining open across the country, with 605 outlets still operating. 

Its community bankers will be withdrawing from existing banking hubs in the coming weeks. 

A spokesman from Cash Access UK said: 'Our Member banks and Link will work together to consider any impact on cash provision in communities as a result of Nationwide’s decision. Cash Access UK stands ready to deliver on all future recommendations.'

Will your town get a banking hub?

When a bank closure is announced, it triggers an independent review by Link, which determines whether a new solution should be provided to meet the community’s cash needs.

It could commission a banking hub or better Post Office services to meet the cash needs of the community as a whole – not just the customers of one particular bank or building society.

However, anyone can request a review of their community’s needs, including members of the public, elected officials and community groups. 

Before completing a request form, you should check what cash withdrawal and deposit services are already available near you. 

To do this, you can use the Link cash locator tool. If you can’t find anything nearby, or if the services don’t meet your community’s needs – if they have restrictive opening times, for example – you can ask Link to review your area.

Companies and businesses can’t make a request under this service.

Once it has reviewed your request, Link may issue recommendations. Communities can’t ‘appeal’ a recommendation, but can ask for a reassessment in the future.

Link says it can’t recommend extra cash services in all communities, but if circumstances change (e.g. another bank nearby closes), a review can be requested after 12 months.

Nick Quin, head of financial inclusion at Link, said: ‘This will always be about serving communities that need support the most, not those that shout the loudest.'

• Find out more: best and work banks

Which? Money Podcast

Join us on our weekly audio show for the latest money news and personal finance hacks to help make you better off.

Listen now

What else can Link recommend?

As well as banking hubs, when a bank closes Link can recommend one of the following solutions:

New ATMs

A total of 13 new ATMS have been recommended in response to bank branch closures, with four of these operational in Bishop's Waltham in Hampshire, Blaby in Leicestershire, and Hythe in Kent. 

Five are due to open in England: Holt, Holsworthy, Newcastle upon Tyne, East Horsley and Norwich. Three are due to open in Scotland: Dunkeld, Falkland and Millport. One is due to open in Ystradgynlais, Wales. 

Cash deposit solution

Link confirmed to Which? that deposit services are primarily to support small businesses, and will be recommended where there is a higher demand for retailers to be able to deposit takings, or in places where the remaining bank branches don’t serve businesses.

Link has recommended 75 of these in total across the UK. 

• Find out more: cost of living support offered by banks

Get Which? Money magazine

Find the best deals, avoid scams and grow your money with our expert advice. £4.99 a month or £49 a year, cancel any time.

Sign up now

What else is being done to protect cash?

Several other initiatives are in the pipeline to help protect cash access:

New law to protect access to cash

First announced in the Queen’s Speech in May 2022, the new law ensures people can continue to conveniently withdraw and deposit cash, following the rapid rate of bank branch and ATM closures. 

Banks and building societies that fail to provide free cash services could face fines by the Financial Conduct Authority (FCA).

The Treasury said the vast majority of those who live in urban areas will have access to free cash withdrawal and deposit services within one mile of where they live. Those in rural areas can expect the same services within three miles of where they live. 

If a service is withdrawn and a replacement service is needed, this should be put in place before the closure takes place. 

The FCA is due to consult on how to implement the new rules and expects they will come into force next summer.

• Find out more: New rules to protect cash access and scam victims become law  

Cash pilots

The Cash Action Group (CAG) is working with 12 communities to pilot ‘new cash services’. These locations will have standalone deposit and banking services in libraries and community centres. 

The communities include:

• Atherstone (Warwickshire)
• Billericay (Essex)
• Bourne (Lincs)
• Dunmow (Essex)
• Faversham (Kent)
• Holyhead (Anglesey)
• Holywood (Co Down)
• llfracombe (Devon)
• Shanklin (Isle of Wight)
• Swanage (Dorset) 
• Swanley (Kent)
• Wallingford (Oxfordshire)

Find out more: can using cash help you budget?

Cashback without purchase

Launched in 2021, ‘cashback without purchase' allows people to request cashback over the till in their local convenience store without needing to make a purchase or pay a fee.

According to CAG, the average transaction values are far lower than at ATMs; around half of the withdrawals are for less than £20.

• Find out more: cashback without purchase explained

This article was first published on 7 September 2022, but has been updated since then. It was last updated on 23 October with information about new banking hubs.