7. What action is the Welsh Government taking to support access to high street banking services in town centres? OAQ(5)0549(FM)

Decisions on the location of branches are matters for the banks but we recognise the negative impact closures can have on communities. Whilst this is non-devolved, of course, we have welcomed the announcement that post offices will be able to provide services to fill some of the gaps left by bank branch closures. If that’s done properly, it may well enhance the service to bank users, rather than reduce the service.

NatWest has announced their closure across south Wales. We’ve heard of closures in the constituencies of Alun Davies, Lynne Neagle, Vikki Howells, and in my constituency, where Ystrad Mynach branch is closing—that comes on top of Barclays closing in Nelson—and NatWest did it without any consultation at all, as far as I’m aware, and I condemn that and I think that there should have been far better consultation than there was. I’m concerned about the impact on elderly and vulnerable people, people who don’t have access to internet banking, and also the message this shows to high streets where there are banks closing, branches closing, and we’re trying to regenerate the northern valleys and build our town centres, and the banks are doing the opposite, and I think it’s absolutely the wrong thing to do.

You mentioned the Post Office: to what extent can you as a Welsh Government and we as Assembly Members ensure that people like the Post Office ensure that those services are properly available?

I’ve seen branch closures in my own constituency as well over the years. I know that, in even branches in Bridgend town itself, the patronage has dropped quite considerably because the reasons for people going to the bank are few in number now compared to years ago. Now, internet banking services are not of themselves a solution. As the Member rightly points out, there are people who either can’t or don’t feel comfortable using electronic services, and provision must be made for them. To my mind, if this is done properly and people can access the same services through the post office, that will give them access to a wide range of branches. It’ll also help with the sustainability of post offices, because I know that they receive a commission for providing those banking services, and the post offices do provide a way of ensuring that services continue for those people who use them.

I have been told by banks that there will be more closures at some point in the future—nothing specific, but it’s just the trend that they have seen thus far. HSBC were the last to resist that trend—they kept their branches open longer than most in some parts of Wales—but it’s absolutely crucial that services are not lost to people and that they are provided by the alternative means of the post office.

A statement by Lloyd’s Bank this week that they intend to shrink a number of bank branches is concerning in a number of ways, particularly in terms of the job cuts that that is bound to lead to, and the erosion in the face-to-face counter service available, but we could also take a positive view of the announcement in part, because what we seem to be seeing is the bank adapting in response to changes in customer habits, rather than taking the step, which has appeared far too easy for them in the past, to close branches. Does the First Minister agree with me that we should urge the banks to adapt rather than close, and that’s best for our high streets in Wales, and that we should seek to use all legislative and regulatory tools possible in order to urge them to do that?

I don’t believe that it’s possible to use legislation to change the situation, but I do agree with him that banks should think of every alternative apart from closure—that should be the very final option, rather than the first option, because, of course, the service is lost to the high street. If that’s not possible, then it’s crucial that the banks deal with the post office so the services can continue in the post office, but we wouldn’t wish to see the closure of branches as a priority for the banks.

First Minister, the NatWest bank, in the last 12 days, has also announced the closure of the Welshpool and Machynlleth branch in my constituency—two very major towns, of course, there, as well. As Hefin David has alluded to, they’ve done so without any public consultation whatsoever. Now, a public meeting was held last night in Welshpool in this regard, and the post office, as you have mentioned, was also discussed as a potential, but a lot of the issues there revolve around privacy and disability access. Is there actually capacity at the post offices, as well, in some particular locations? Now, as you said, I understand absolutely that this is, of course, an issue, ultimately, for the bank—it’s a commercial decision. I have previously raised—and had a fairly positive response from Ministers when calling for the Government to facilitate a discussion with the banks and the Financial Conduct Authority and other partners to explore a community banking model that would see banks share services. I wonder whether this would be something that you’d be willing to explore in more detail.

I will consider that. I’ll ask the Minister to write to the Member with regard to the proposals that he has made. What we don’t want to see is a loss of banking services completely in communities, and there is a danger that, where banks—particularly when they do this very quickly—decide to shut branches, sufficient provision isn’t made in the post offices—that they don’t leave a cash machine, for example, in a community, so people can’t get cash. I know that in Crickhowell, recently, one of the branches closed, but the ATM has remained, which provides some service for local people, although not all services. So, I will ask the Minister to write to the Member in that regard, particularly with regard to the suggestion he makes on community banking.