A local AM has called for a new model for community banking in response to a series of bank closures in his Montgomeryshire constituency.
Royal Bank of Scotland Group (which includes NatWest) have recently closed branches in Llanidloes and Llanfair Caereinion affecting residents and businesses in these communities who rely on “over the counter” banking services. This follows the closure of the HSBC branch in Llanidloes in 2013.
The NatWest branch in Montgomery, which is currently only open from 10am to 2pm on Thursdays, has been earmarked for closure in January.
Russell George, AM for Montgomeryshire, has recently raised the issue of community banking in the National Assembly for Wales.
Speaking in a debate on Town Centre Regeneration, Mr George told Lesley Griffiths AM, the Minister for Communities and Tackling Poverty that the closure of a number of banks in Montgomeryshire is a backward step, he said:
“The closure of banks in Mid Wales is having a devastating effect on our town centres.
“The presence of banks on our high streets is essential if towns like Llanidloes, Montgomery and Llanfair Caereinion are to continue to flourish.
“Small businesses, particularly those engaged in retail activity, charity organisations and elderly or disabled residents are the most disadvantaged by bank branch closures and online or mobile branch banking does not always adequately replace permanent “over the counter” facilities.
“I recognise the pressure which high street banks are under as a result of technological developments and other factors. All the more reason for them to come together to explore a new innovative model of community banking which will see them share buildings and services to ensure they continue to serve their customers in rural areas of Mid Wales. I recognise that some banking services can be accessed through the Post Office, but often Post offices themselves are also under threat.
“While the decision to maintain a branch is a commercial decision for the banks, I would also like to see the Welsh Government play a role in facilitating a community banking model to become a reality by working with both the Financial Conduct Authority and Competition & Markets Authority to explore ways in which regulators can make improvements to inter-bank agency agreements.
“Until an alternative solution is in place which is satisfactory to communities in Mid Wales, I urge NatWest to defer its decision to close its branch in Montgomery.”
In response to Mr George, the Minister for Communities & Tackling Poverty, Lesley Griffiths AM, noted that innovative community banking models ought to be explored in more detail.
Mr George now intends to write to the Minister to formally ask for Welsh Government officials to facilitate a meeting of all interested parties including the banks, the Post Office, regulators and community groups to discuss alternative solutions which will see “over the counter” banking services maintained in Mid Wales.