The government has launched an independent review into access to banking services amid growing concern over the impact of bank branch closures on communities and consumers.
Commissioned by Lucy Rigby, economic secretary to the Treasury, the review will examine the real-world effects of branch closures, identify which groups are most affected and assess whether further intervention is needed to protect access to in-person banking services.
The move comes as more customers shift to digital banking, prompting banks and building societies to reshape their branch networks. However, the Treasury said the transition may be creating challenges for people who continue to rely on face-to-face services.
The review follows the government’s announcement in the King’s Speech that the upcoming Financial Services and Markets Bill will include powers allowing the Treasury to act swiftly if evidence supports intervention on banking access.
Rigby, said access to banking services remained “a really important part of lives and communities.”
“We are supporting industry’s roll out of banking hubs, but we also need a clear picture of where communities are still losing out,” she said.
“This independent Review will show us where the problems are and what further action may be required – and we will move quickly to legislate where the evidence shows it is needed.”
The Access to Banking Review will be chaired by Richard Lloyd, former interim chair and non-executive director of the Financial Conduct Authority and former executive director of Which?, with recommendations due to the government by October 2026.
He also contributed to the Access to Cash Review, which set out recommendations to make sure people can still withdraw and deposit cash locally. The findings of the review helped inform later changes in law and regulation, including new FCA powers and encouraged industry solutions such as banking hubs.
Lloyd said the review would assess the long-term need for in-person banking services despite the continued growth of digital banking.
“Banking is an essential service that every consumer and community in the UK needs,” he said. “That’s why it’s so important to take stock of the impact that the big shift to digital services has already had, and to understand the need for access to in-person banking in the future.”
The Treasury also confirmed that the Bill will progress reforms to credit union common bond rules, aimed at helping credit unions expand membership and increase access to affordable financial services.
Industry groups welcomed the review, with Gareth Oakley, chief executive of Cash Access UK, highlighting the ongoing importance of local access to cash and face-to-face banking.
“While cash usage continues to decline as digital payments expand, we’ve seen first-hand how important local access to cash and face-to-face banking is for many households and businesses,” he said.
“We look forward to contributing towards the review and working with the government.”
Oakley noted that more than 230 banking hubs had already opened, with 95 per cent of customer needs met through the facilities.
According to the Treasury, more than 275 banking hubs have now been announced as part of the government’s target to deliver 350 hubs by the end of the current parliament.