Forres may get shared 'banking hub' by Autumn

A shared 'banking hub' could open in Forres by the Autumn meaning customers will no longer have to travel to Elgin or Nairn.

The hub will be open from Monday to Friday to allow customers from any bank or building society to withdraw and deposit cash as well as carry out regular transactions.

In addition, 'community bankers' will work there on a rotating basis, with a different bank present each day of the week.

The hub will have private spaces so customers can speak to their own community banker about more complex issues.

The hub aims to fill the gap left in Forres following the closure of the town's last bank branch last July.

Moray's MSP met this week with the Banking Hub Company to get an update.

Speaking afterwards, he said: "Plans for a hub, which will be open 9-5 from Monday to Friday, will be well supported in the community.

"It will be a real boost for folk to know they will be able to speak to a representative from their own bank in person without having to travel to Elgin or Nairn.

"I’m told that work is ongoing to secure suitable premises on the High Street, with a preferred option having been identified.

"Hopefully these discussions will conclude positively and things can move quickly to get the doors open as soon as possible."

Amanda Bell, the Banking Hub Company’s delivery director, also spoke after the meeting.

She said: "Having access to cash services is vitally important for millions of people around the UK, particularly in challenging financial times.

"So, I’m thrilled to confirm that we are well underway with the Forres Banking Hub.

"Seeing the success of our existing Banking Hubs and the impact they have already had within their local communities is an important reminder of how vital face-to-face banking services are for people – from counter services to the knowledge and support of the community bankers.

"We’re in the process of negotiating a suitable venue for the Forres Hub and we’ll be updating the community throughout 2023 on our progress."

The Banking Hub Company has provided the following detailed Q&A:

• What is a Banking Hub?

A Banking Hub is a shared banking space, similar to a traditional branch but available to everyone. The Hubs consist of a counter service operated by the Post Office, where customers of the UK’s main banking providers can withdraw and deposit cash and carry out regular banking transactions. In addition, there are private spaces where customers can speak to someone from their own bank or building society about more complex issues. These ‘community bankers’ work on a rotating basis, so a different bank will be present on each day of the week. Community bankers are provided by the banks or building society with the largest number of customers in the local area.

• What services will the Hubs provide?

Banking Hubs will offer basic counter services, allowing people to withdraw cash, deposit cash and cheques and make balance enquiries. A Community Banker will also be available so that people can speak to their own bank about more complex banking issues they may need help with. A different bank will be present on each day of the week.

Over time, the Hubs will evolve to meet the needs of the communities using them, as we learn more about the services people need and adapt to the changing ways people are using cash and banking services.

• What other services are available to people who need access to cash?

Communities large and small in every part of the UK need access to cash. There are a range of existing services that are being expanded or others that have been recently launched, including:

• Free ATMs

• Post Office counter services

• Deposit/SME business services

• Cashback without a purchase

• How many Hubs are planned?

So far, 29 Banking Hubs have launched, are launching soon or are under construction. We are expecting the next ten hubs to open their doors within months. This is just the first wave in the rollout of Hubs around the UK and is part of a longer term vision for cash access on the high street.

It’s clear that there’s continued demand for access to cash and basic banking services and we expect to be supporting hundreds of communities over the next few years.

• Who will work in the Banking Hubs and how will they be sourced/trained?

‘Community bankers’ from a different bank or building society will be present on each day of the week. Customers will need to check when their own bank’s Community Banker staff will be present in the Hub and can go in and speak to them without an appointment. Customers of any bank or building society can use the Post Office-run counter services any day of the week.

• Will the staff be able to help resolve problems and complaints?

Banks and building societies all follow the same process for dealing with complaints and sorting out problems - from errors to financial difficulties - under existing financial services regulations. Community Bankers will be able to offer advice and support in the Hub – and direct customers to other teams in the bank or building society who can sort out problems or resolve any complaints.

• How will the Banking Hubs help more vulnerable people?

Access to cash remains important to the daily lives of many people across the UK. Between 5 and 6 million adults say they rely on cash in their day-to-day lives. Meanwhile, digital payments simply don’t work in some situations or for the millions of people who still rely on notes and coins. The biggest driver of cash dependence is income, although it is true that many older people rely on cash too – and many appreciate being able to speak to someone from their bank or building society face to face.

We know from the pilot Banking Hubs that they can make a real difference to people in who are vulnerable – from older people who decide to do their own banking rather than rely on a friend or neighbour, to the family on a low income who can deposit cash more frequently and avoid going overdrawn. We expect the new Hubs will make a similar positive impact in communities across the UK.

• How long does it take to set up and launch a hub?

Creating new services does take time, though we are working as quickly as possible to set up and open each Banking Hub. Once we have found a suitable property, created the Banking Hub and refurbished the building, it can take up to 12 months to open a Hub. But with every Banking Hub we develop and launch, we’re streamlining the process.

Setting up a Banking Hub generally involves two phases

• First six months: we work with our appointed property agent to secure a suitable, accessible location for the Banking Hub, agree the lease and begin creating the hub itself.

• Second six months: we make the structural modifications and carry out building/electrical work. We kit out the hub and Post Office employees begin training in the final month before the launch.

While the first six-month period is the most unpredictable in terms of timescales, the second six months builds in extra time for unexpected events (issues with the lease, building problems, etc.) but in many of cases, the launch date can be much sooner than the ‘official’ timescale – ideally within three months of signing the lease.

• How do you decide which communities need a Banking Hub or cash services?

A lot of research has gone into identifying where the Banking Hubs and other cash access alternatives are needed most.

The need for a hub isn’t just determined by the size of a community. A range of factors are considered, including everything from the distance to other place to the proportion of people in the community who use online services.

Hubs can come about in two ways.

1. Whenever a participating firm closes a branch it notifies LINK in advance. LINK will then assess the location’s needs, looking at what other services are available locally, the size of the community (people and number of shops) and determines whether the community needs a Hub. The criteria that LINK uses have been developed and agreed after extensive consumer and small business group input, and is operated independently of the banks.

2. Anyone can ask LINK to review their community’s cash needs by filling in a form on LINK’s website: https://www.link.co.uk/consumers/request-access-to-cash/ LINK will then independently assess the needs of that community using the same method. Barton-upon-Humber in Lincolnshire is the first Hub that will be created after the community requested a review.

LINK, the Post Office and other cash services available now

Banking Hubs are not the only solution to cash access. It’s important that consumers have access to a range of services so they can get cash when they need it, including outside traditional banking hours. Some of these options include:

The LINK network and providing access to cash

The LINK cash locator can help people locate where they can access cash in their local neighbourhood by postcode, including resources such as:

• Free ATMs

• Free cashback without purchase

• Post Office counter services

• ATMs that dispense £5 notes

• Deposit services

• Coin deposit services

• Foreign currency deposit services

• ATMs and cashback services (chargeable)

The site also identifies where services are available to support people who might need specific help, like wheelchair accessibility and audio assistance.

Cashback without purchase

LINK launched the ‘cashback without purchase’ initiative in November 2021 after a year-long successful trial. While many people will be familiar with the concept of ‘cashback’ – asking a retailer to provide them with cash as part of a purchase - they may also remember that this was often at the retailer’s discretion. Many people felt compelled to make a purchase in order to ask for cash.

Cashback without purchase offers exactly that – cashback on request, without strings. Best of all, the scheme is available in 8,000 shops that use PayPoint as their cash services provider.

PayPoint has 28,000 locations nationwide and allows retailers using the system to take bill payments, collect parcels (Collect +) and other services that will be familiar to millions of people. Many of the retailers are small, local shops that people particularly affected by the cost-of-living crisis rely on and use for other counter services like purchasing credit for pre-payment energy meters.

Post Office Counters

Post Office is the UK’s largest retail network with over 11,500 branches within 3 miles of 99.7% of the population [https://www.accesstocash.org.uk/media/1100/post office.pdf].

This makes the Post Office the largest branch-based network where people can access their cash. Over 120 million transactions on behalf of 27 high street banks took place in 2018. People can currently use the following services at the Post Office:

• Cash withdrawals

• Paying in cash and cheques

• Balance enquiries

• International transfers

The Post Office is a vital service for many people who rely on cash. However, it can’t always meet the needs of everyone in every community. The Post Office will be providing counter services in the new Banking Hubs, alongside staff from the individual banking firms that have the most customers in the local community.