The First Minister of Wales has said that banks have a ‘social responsibility’ to carefully consider any proposed branch closure and what its potential impact will be on the affected community.
He made the comments in response to a question raised by Montgomeryshire Assembly Member, Russell George AM, who expressed his concerns about the proposed closure of a branch of HSBC in Llanidloes.
Mr George said that there was a growing awareness that groups in areas of rural Wales were becoming ever-more excluded from banking services because they lack access to banking facilities that are widespread in the rest of society. He asked the First Minister, Carwyn Jones AM, whether he thought banks had a social responsibility to carefully consider branch closures and he also urged Welsh Government to map financial services in rural Wales and monitor those services to prevent their further erosion.
Responding, Mr Jones said that while closures were a matter for the banks, in regards to the commercial decisions that they make, it was a matter of concern to the Welsh Government. He agreed that banks did have a ‘social responsibility’ to consider closures ‘now more so that ever’ and that his Government was committed to maintaining access to mainstream financial services.
Commenting Mr George said:
“I welcome the comments of the First Minister and that he agrees with my concerns.
“I met with senior HSBC officials this week to question them on their rationale for closing the branch and what their responsibilities were to their customers, many of whom relied on traditional local banking services.
“My view is that this branch should not close and that the ATM should not be removed and I made that point very clear to them.
“A lot of faith has been lost in the banking sector over recent years and I think they need to do more to engage with customers and support their specific needs.
“While I understand that many people have changed their banking habits and how they access financial services over recent years, the heavy reliance of banks on developing technology has tended to reinforce the exclusion of groups already marginalised in rural communities – not just finically but also socially.”