Jane Hutt MS, Cabinet Secretary for Social Justice, Trefnydd and Chief Whip
Bank branch closures continue to affect communities across Wales, and we regularly see reports in the media, usually with a focus on concerns about the impact on access to cash and a reduction in face-to-face banking services.
While usage trends show some renewed demand for cash, especially among those using cash to support budgeting, the broad trend is downward. However, it is essential that we preserve access across Wales ensuring inclusivity of services.
Although ‘financial services’ is a reserved matter, with responsibility resting with the UK Government, financial inclusion is a key priority for Welsh Government.
I am pleased that the UK Government has pledged to establish at least 350 banking hubs across the UK. The network of these across Wales continues to expand - there are twelve shared banking hubs now open in Wales with three further in the process of being established, these will be in Chepstow, Gorseinon and Holyhead. These banking hubs are a lifeline for local communities that have lost their final bank branch.
The hub already operating in Porthcawl is one of the busiest across the UK. The hub in Treorchy is also unique in Wales as it is located within a supermarket rather than a post office or standalone premises. A pilot is also being trialled at the Treorchy hub through the presence of a Customer Liaison Officer, providing general assistance and signposting to customers and providing a safe space for customers to connect with their bank, either via the Community Banker or telephony.
Of course, post offices play a crucial role in providing cash access services, allowing customers to pay in cash, deposit cheques and withdraw cash from bank accounts. More must be done to raise awareness of the role post offices have in enabling access to cash. Other key mitigations in development include enhanced post office counters, money at the till initiative which supports free cash back at retail outlets, mobile deposit and withdrawal units, multi-bank super ATM’s and credit union facilities supporting face to face services in communities.
Unique solutions are also being established in communities across Wales, with partnerships in place providing alternative banking access, for example Barclays Local, operating from community spaces, such as Tredomen Business Park, and Monmouthshire Building Society’s Community Connect counters, which I was very pleased to visit in May this year. These provide great examples of how banks and building societies are finding new ways to support people in the heart of communities.
All these initiatives share the same goal – maintaining inclusive access and deposit services for people and businesses that rely on physical banking facilities.
My officials continue to work closely with LINK (the UK wide cash access network) and Cash Access UK to safeguard free access to cash across Wales.
LINK leads on assessing the need for new banking services (ATMS, shared banking hubs with and without ATMs) following every bank branch closure announced and where the last branch in any town closes and can commission replacement services where required.
Regulatory safeguards now require banks to assess the impact of closures on access to cash and to report on support for their vulnerable customer base via the Consumer Duty.
My officials also meet regularly with the FCA, who are responsible for regulating the Consumer Duty and it’s rules that obligate banks to assess local cash access gaps before closing any services. If gaps are identified, banks must offer alternatives such as shared hubs, ensuring access to a local post office branch or mobile branches.
Individuals in communities can also request an assessment of banking services by LINK - LINK / Request Access to Cash Review.
As Cabinet Secretary for Social Justice, Trefnydd and Chief Whip I am concerned about the impact of bank closures on those who either cannot or choose not to bank online and welcome the roll out of alternative local banking solutions.
In March 2025, I attended a second successful ‘Banking in Welsh Communities’ event, hosted by Welsh Government and held in partnership with FinTech Wales and with the support of the Principality Building Society. Attendees included businesses working on financial products, financial regulators, mainstream banks, credit unions, building societies as well as third and voluntary sector organisations.
The objective of these events is to support key discussions that focus on how we can form links, collaborate, and adapt the support provided to individuals—including those facing significant barriers to financial inclusion—as well as to businesses and communities, so that this support addresses the rapid changes taking place in high street banking. I remain committed to assisting communities to access alternative banking services and to support this a third event will take place in early 2026.