Harpenden Community Banking hub


Harpenden Banking Hub – an update on the Town Council work
June 2023

Introduction

Harpenden Town Council (HTC) has for some time been monitoring the situation regarding resident and business access to banking services in the Town. Having seen much change in recent years we believe it is essential to establish a Banking Hub in Harpenden.

This update aims to set out our most work on this matter and also provide answers to some of the common questions about Banking Hubs.

Latest position

In February 2023, HTC made an application to the relevant bodies to have a banking hub set up in Harpenden. As part of that application we set out a very clear case as to why it is needed. At the heart of this case was the feedback from residents and businesses gathered through our community surveys undertaken in 2022.

When submitting our application, we were very concerned that the limitations of the current criteria imposed on LINK (the assessors) by the banks regarding ‘last bank in town’ would mean that the clear and urgent need for a full banking hub in Harpenden would be denied.

Unfortunately, our concerns have now come to fruition despite the recent announcement by Barclays Bank that they will be closing their Harpenden branch on 6 September this year, the last of the six banks in the town. We received confirmation from LINK that following an assessment, Harpenden does not qualify for a full Banking Hub as there is a branch of Nationwide Building Society acting as the ‘last bank in town’. We will instead get a ‘Deposit Service’, yet to be defined but expected to be automated.

Our view is that the diminishing offer of banking services in Harpenden has been detrimental to the 31,000 Harpenden residents and the 12,000 that reside in Redbourn and Wheathampstead which are neighbouring villages that rely heavily on Harpenden Town Centre. A ‘Deposit Service’ will not meet the needs of the residents and businesses in Harpenden and the surrounding area.

We have written to the Financial Conduct Authority (FCA) who are very active on this matter and who will soon gain further powers including overseeing the rules and criteria that govern the establishment of full banking hubs. We have set out that we believe that it is an anomaly that Nationwide Building Society should be seen as acting as the ‘last bank in town’. It is not a bank, nor does it offer banking services to businesses and other similar organisations such as clubs and charities. This anomaly denies Harpenden a banking hub that is desperately needed by our residents, independent retailers, charities and small businesses.

In our correspondence with the FCA we have encouraged them to review this anomaly as a matter of urgency, but we have also recognised that a review of this nature may take time for them to carry out. However we have made it clear that it is imperative that we secure a full banking hub for Harpenden by the point at which the Barclays Bank branch closes in September. We have therefore proposed to the FCA that they take the opportunity to build on the work that HTC has done locally and uses Harpenden as a pilot by establishing a full banking hub in the Town, despite the Nationwide Building Society presence, to help inform any future changes to the criteria regarding the ‘last bank in town.

We are hopeful that our proposal will be well received and that we can move one step closer to securing a Banking Hub for Harpenden. We will provide further updates on this over the summer period.

Carl Cheevers – Town Clerk, Harpenden Town Council
28 June 2023

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FAQs

What is a banking hub?

A Banking Hub is a place where the public and businesses have daily access to face-to-face counter service, with the same transactional banking facilities that the high street banks offer. This includes the opportunity for scheduled private consultations with individual bank representatives. They are organised and funded by banks and would not be funded locally using public funds.

A hub is a dedicated and appropriate banking space, open to customers of all retail banks, situated in the centre of town and aims to be accessible to everyone.

Why do we need a banking hub?

Across the country, High Streets have seen many changes over recent years and ours in Harpenden is no different. One of the big changes is the reduction in banks and the services that they offer. Having engaged local people the key reasons why this is needed in Harpenden are below:

  • Significant volume of closures so far have already made it very difficult for local people and businesses to access banking services;
  • Reduction in banks has had a detrimental impact on High Street retail footfall
  • Local people and businesses are unable to bank in the way that they would like;
  • Impact is felt across age groups but more so in the over 55’s;
  • Clear demand for transactional services (cash withdrawals above ATM and PO limits, need for denominated cash, regular or event related large cash deposits, depositing high value and foreign currency cheques);
  • Clear demand for in person expertise (account problems, including digital), proof of identity, bereavement procedures, Power of Attorney registration, opening new accounts or adding/removing names, resolving fraud issues, signing/authorisation changes to charity accounts, arranging large - including international - payments/transfers).

Who would own, fund and operate the hub?

It would be owned by Cash Access UK, funded by the banking industry and operated by the Post Office (but in a separate location).

Where will the hub be located and who finds the appropriate property?

They are situated in the centre of town and aim to be accessible to all members of the public. There should be at least 1,000 sq ft, able to be secure and have appropriate back-office space. Cash Access UK appoint agents to identify and secure the venue for hubs.


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Your opinions matter

Earlier in 2022 we asked businesses and individual banking customers to complete our Banking Survey to understand the need for a Banking Hub. We received an excellent response which enabled us to collect valuable data. The information you gave us is currently being analysed and used to support us in exploring the opportunity to open a Banking Hub. You can click on the links below to read the survey response summaries. Please also continue to follow our social media channels, and revisiting our website, as update these regularly.

Summary of banking hub business survey 

Summary of banking hub residents survey

 

Harpenden Community Banking Hub Primary Featured Image

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