Last bank in town has closure postponed

The branch has had another stay of execution due to new rules that come into force later this month

The closure of the last bank in a Derbyshire town has been “paused” due to new national rules over access to cash.

In June HSBC announced its branch in Ripley would be closing on 15 October.

The bank first announced the closure in 2022, before postponing the plans to consider alternatives.

But the October closure date has now been scrapped, according to messages sent to customers in the town seen by the BBC.

New “regulatory charges” from the Financial Conduct Authority (FCA) over access to cash have been cited by HSBC.

The FCA’s new guidelines come into force from 18 September.

They require banks to assess the impact on the access to cash when making changes such as closures, deliver additional cash services if gaps are created, and keep facilities such as branches and cash machines until these services are available.

In June, HSBC said it would provide a “banking pod” for customers to deposit and withdraw money.

At an Amber Valley Borough Council meeting on 9 September, councillors approved plans for a community cash pod on the marketplace outside Ripley Town Hall.

The hub is due to be created outside the town hall in Ripley

Land leased to HSBC by the council will be used for a small timber-clad building with an ATM inside, said the Local Democracy Reporting Service.

Despite approving the plans, councillors said it was no replacement for the in-person banking services the branch closure would remove.

Beth Pywell, agent for the applicant, said the vast majority of customers exclusively carried out their banking online with far fewer people withdrawing money in person.

She said the pod would not be a banking hub but that could be something that is revisited following an independent national survey of each town’s banking needs.

Customers have been told by HSBC that a new closure date for the Ripley branch will be set once the town’s assessment is published.

The BBC has approached HSBC for comment.