Last week in Parliament we debated the rapid closure of bank branches across the country. This particularly impacts rural towns and villages where bank branch usage has dropped to very low levels. For decades we have seen technology enter our everyday lives including in the banking sector. Online and mobile banking has become common place and the number of bank branches has declined from the peak of over 20,000 in 1988. In the 1990s I worked for NatWest Bank in technology procurement where investment in the ATM network and computers in branches was starting to change the way we bank.
Now, so many of us use online or mobile banking that our community branches are used much less often. Barclay’s in East Wittering for example recently closed citing a fall in transactions of 10% in just one year. The change in our behaviour is remarkable given the time frame, it was only in 1990 that 4 billion cheques were cashed and 25% of adults were paid in cash. By comparison, cash now makes up less than half of all transactions and this trend is set to continue. Already 6% of the population rarely use cash and young people, in particular, prefer digital payment methods. Generally speaking, this change has improved customer service and we no longer need to travel and queue to transfer money.....for most of us online banking is much more efficient and offers better customer service.
However, there are concerns that branch closures may leave some without access to banking, particularly older people who prefer face to face banking. But there is some good news as all four of our high street banks have done a deal to offer face to face banking services through the post office network. At the end of last year, I visited the new Chichester Post Office where I discovered that all post offices provide banking services for 99% of personal customers and for 95% of business services. Across the Chichester constituency there are 32 Post Offices, and nationally almost all of us live within 3 miles of one.
The debate focussed on making sure that within a shared premises model, the needs of banking customers are taken into account when designing the new post offices which themselves are often co-located with retailers. One concern I raised during the debate was the need for banks to keep free access to a nationwide ATM network.
The technology for online banking is user friendly and if you don’t yet have the know how there is always time. Many banks offer training for customers in how to use their apps and websites. I have heard of one grandmother of 12 in Bosham, who, for the first-time last year gave her Christmas cheques via online transfer…!
Of course, technology requires good connectivity. The Government has managed to provide super-fast broadband to 95% of homes. However, this is not the case for many towns and villages in our area, a point I raised in the debate and I will continue to do so until we all have access to this.
I still hold surgeries and public meetings across the constituency so get in touch with the office at Gillian.Keegan.MP@Parliament.uk if you need a surgery appointment. There will be a public meeting at Selsey Town Hall on 23rd February at 2.30pm for anybody who wants to come along and ask a question.