Moray MSP calls for new LINK rural banking hubs criteria

MORAY MSP Richard Lochhead has called on the Financial Conduct Authority (FCA) to implement a new set of criteria for rural areas when LINK are considering if a banking hub is required.

Mr Lochhead’s letter to the FCA follows his recent meeting with LINK to discuss the erosion of banking services across Moray, prompted by the Bank of Scotland’s decision to withdraw their mobile banking service from several towns and villages in Moray.

From Q4 of 2024, the FCA will be regulating the work undertaken by LINK and the former organisation are currently reviewing the criteria used by LINK when assessing potential locations for banking hubs, with the potential to widen the stipulations for rural areas.

Mr Lochhead said: “During my meeting with Bank of Scotland we discussed whether there might be an opportunity for a banking hub to be considered for Lossiemouth and Speyside, similar to that which has just been delivered in Forres.

“At the moment, LINK base decisions on whether a particular area would benefit from a banking hub by using a rigid criteria on the number of residents and businesses within 1km of the town centre which is simply too strict for many places across Moray to ever qualify.

“Given the scale of bank closures and the continued removal of banking services, which is disproportionally impacting areas like Moray, it is vital that bespoke criteria is introduced when considering banking hubs in rural areas, recognising their unique circumstances and ensuring that that they are provided with more protection so communities are able to access these services as close to home as possible.

“I’ve asked the FCA to consider this and outline the steps being taken to ensure fair and proportionate criteria is introduced for rural areas so they too can benefit from local banking hubs.”