Banking Hub Trial Expands

North Yorkshire town to receive a new hub in 2022

December 23, 2021
Banking Hub Trial Expands
CompareBanks is reader-supported. When you click through some links on our site, we may earn an affiliate commission. Learn more

A trial scheme that explores the feasibility of banking hubs – shared bank branches for communities where their local branches have closed down – is to extend in 2022 to Knaresborough.

The North Yorkshire town currently has no bank branches following the closure of the last one in March 2021, and has only two ATMs for residents. As a result, customers have been forced to travel to nearby Wetherby or Harrogate in order to carry out any in-person banking.

The new banking hub will be launched sometime in the next year – the decision on when exactly, and the location of the new hub, are yet to be decided but should be confirmed early in 2022.

Review your own bank

Falling Branch Numbers

The new branch will be set up by the Access to Cash Action Group (ACAG) which had already set up two similar banking hubs in Essex and South Lanarkshire. The banks that will be involved in the banking hub at Knaresborough are Barclays, HSBC, Lloyds, Nationwide Building Society, NatWest, Santander, TSB and Danske, accounting for many of the major high street banks.

Customers will be able to use the banking hub for basic cash services, such as making deposits and withdrawals, along with a select few other services to be determined by each respective bank. Certain services will still require customers to travel to a dedicated branch.

A representative for ACAG said that they were delighted to announce the new banking hub in Knaresborough, showing that the pilots run so far had been successful. They acknowledged that while the demand for cash is on the decline, there are still five million people in the UK who rely on it, including some of the more vulnerable members of society.

The Office for National Statistics has reported that the number of bank branches in the UK is now around 7,000. In 2012 there were 11,300 bank branches in the UK, a decline of approximately 38%.

This is great news for Knaresborough, a town starved of its banking facilities. I am sure this new facility will be well-used by residents, businesses and visitors.

Knaresborough MP Andrew Jones

Cash PayPoint Trial Also Expands

Another trial that has been running in the UK to help provide more access to cash is set to expand soon. The scheme allows customers to withdraw cash at a shop with a PayPoint network, without needing to make a purchase from the shop and with no charges. It’s currently available in 900 stores in the UK and that number will soon rise to 2,000.

Customers are able to withdraw any amount they want to between 1p and £50 – they are not limited to making withdrawals in a rounded £5 or £10 amount. During the last 12 months when the trial has been active, over 24,800 transactions have been made by customers, with an average withdrawal amount of £27.81.

The number of ATMs has also fallen drastically – since 2018, 25% of the free-to-use cash machines in the UK have disappeared, along with almost 1,000 pay-to-use machines.

Ian Lewis
Ian Lewis
Ian is an experienced writer with 15 years’ experience working in journalism and marketing. He’s worked in-house in financial institutions as well as writing freelance pieces for a variety of banking and financial trading websites.

Related Articles

Revolut launches US stock trading
Revolut launches US stock trading
British-based banking app Revolut has gone live to US customers with its stock trading...
January 20, 2022
UK Banks Vulnerable To Fraud
UK Banks Vulnerable To Fraud
New research from Which? shows that UK banks aren’t doing enough to protect their...
January 17, 2022
Nationwide Hit With Payments Issue
Nationwide Hit With Payments Issue
Nationwide has been hit with a technical issue that caused delays both to inbound...
December 22, 2021
Bank of England Raises Interest Rate
Bank of England Raises Interest Rate
The Bank of England has raised the interest rate for the first time in three years,...
December 19, 2021

Mentioned Banks

About Barclays Bank Barclays is a British multinational investment bank and financial services company. It was founded in 1690 and is headquartered in London. Barclays originated...
Learn More
About HSBC Bank HSBC is a British banking and financial services company. It is the largest bank in Europe and the seventh largest bank in the world. The bank originated in Hong Kong...
Learn More
About Lloyds Bank Lloyds Bank is a British retail and commercial bank. One of the ‘Big Four’ clearing banks, it was founded in Birmingham in 1765. It is the largest retail bank in...
Learn More
NatWest, or National Westminster, is a retail and commercial bank based in the United Kingdom. It is one of the ‘Big Four’ UK clearing banks and has more than 7.5million personal banking...
Learn More
About Danske Bank Danske Bank, formerly known as Northern Bank, is a Northern Irish commercial bank. As Northern Bank, it was one of the oldest banks in Northern Ireland and was one...
Learn More
About Santander Santander UK is a British bank. Though it is a British company and autonomously managed, it is entirely owned by the Spanish Santander Group. Santander is one of the...
Learn More
About TSB TSB is a UK-based retail and commercial bank. It is a subsidiary of the Sabadell Group. The TSB we know today came to be in 2013, formed from Lloyds TSB Scotland PLC and...
Learn More
About Nationwide Nationwide is a British building society and mutual financial institution. Headquartered in Swindon, it has additional offices in Glasgow, Bournemouth, Northampton...
Learn More

Comments

Leave a Comment