Bank branches are vanishing fast. The UK had around 10,410 bank, building society and credit union branches in 2019; by 2024 that had fallen to 6,870 – a 34 per cent drop in just five years.
Other research suggests one in three branches have disappeared in that time.
Into this gap, the banking industry and government have pushed a new model: banking hubs. These shared sites are intended to keep cash services alive and offer some of the face-to-face support people once relied on their local branch for.
But can they really fill the void?
What banking hubs actually do
Banking hubs are designed to stop communities becoming banking deserts. Run jointly by the Post Office and Cash Access UK, they let customers of major banks pay in cash, make withdrawals and get help with routine queries. Each participating bank sends a ‘Community Banker’ on certain days for more complex support.
Gareth Oakley, CEO of Cash Access UK, says that while digital banking is growing fast, millions still need in-person help. He says: “There are still millions of people who rely and prefer to use cash as well as many businesses who need to bank and access cash daily.” Hubs and deposit services, he adds, are “playing an important role in protecting access to cash”.
The rollout has gathered pace recently. “There are 191 banking hubs open across the UK and we expect to open the 200th before Christmas,” Mr Oakley added. “On average, two hubs are opening every week.” Typical hubs handle “around 150 customer transactions a day”, with cash withdrawals and deposits the main draws.
Still, hubs remain more limited than branches.
The Post Office notes that “services like posting letters and parcels… aren’t available in our hubs.” Their remit is firmly focused on basic banking.
Finance expert Funmi Olufunwa believes hubs are expanding simply because demand is so high. “They’re filling an ever-increasing gap, which is needed,” she says. But she also warns they can only succeed “if they are properly staffed and run properly”.
Are they enough?
For some customers, hubs meet their needs. For others, they fall short of what branches once offered. Campaign for Cash’s Martin Quinn has described them as “a great idea in theory”, but one that can leave noticeable gaps.
Those gaps tend to show up in everyday practicalities.
Many hubs can’t print bank statements, and private spaces for sensitive conversations are limited. Because each bank sends a Community Banker only on designated days, anyone dealing with fraud, bereavement or mortgage issues may have to wait.
Get a free fractional share worth up to £100.
Capital at risk.
Terms and conditions apply.
Go to website
ADVERTISEMENT
Get a free fractional share worth up to £100.
Capital at risk.
Terms and conditions apply.
Go to website
ADVERTISEMENT
Olufunwa points out that hubs are particularly important for customers who value dealing with someone face to face. She explains: “Those that benefit the most will be those that still prefer an element of face-to-face banking.. especially if they’re vulnerable.”
Businesses, too, rely on hubs for depositing cash or getting change. Weekend closures, however, remain a sore point for many small traders.
The digital divide remains stubborn
Banks often emphasise the growth of online banking. But this overlooks people who rely on cash, those without reliable broadband, and anyone who feels more comfortable speaking to a human being.
As more services move online, Olufunwa fears some groups risk being excluded.
“There is a risk that some people could be left behind.. such as the elderly who aren’t as comfortable using online banking,” she says.
When it comes to sensitive issues, different people want different things. “Some people might prefer distance,” she says. “Others will want face-to-face support with someone they can look in the eye and trust.”
Awareness remains patchy
Despite hundreds of hubs operating or planned, many people still don’t know where their nearest one is. Olufunwa thinks better communication is essential.
“Someone told me their and their dad’s nearest bank branches had closed and they couldn’t find their local banking hub,” she recalls.
“It’s really important that people know where the hub is and what you can do there.” She believes hubs should actively gather customer feedback – and act on it.
You can check your nearest banking hub here.
The high street and the future
Traditional branches once anchored high streets – generating footfall, supporting traders and signalling that banks remained invested in local areas. Hubs restore some physical presence, but on a smaller scale.
Some councils fear they are only a stopgap; others argue they now provide the only reliable face-to-face banking most communities are likely to get.
Hubs have become the only realistic source of in-person banking in many towns, yet they fall well short of what branches once offered.
Limited hours and a restricted service list mean their long-term value hinges on proper investment. With more staff and better visibility, they could become permanent fixtures; without it, they’re likely to remain a stopgap in a banking landscape rapidly moving online.
When investing, your capital is at risk and you may get back less than invested. Past performance doesn’t guarantee future results.