Bank closures: Cowbridge kiosk aims to help customers

Nicola Ridd-Davies

"Younger people are not really using the banks," says Nicola Ridd-Davies in Ystradgynlais

By Huw Thomas
Business correspondent, BBC Wales

A new machine being tested in Wales could help "struggling" customers access their bank accounts, even if their local branch has shut.

A pilot scheme in Vale of Glamorgan allows customers of 22 banks to deposit and withdraw cash at a new kiosk.

It is in a branch of Principality in Cowbridge, a town whose high street has been hit by a number of banks closing.

An average of 54 UK bank branches have shut each month since January 2015.

The Principality machine is operated by One Banx and is different to the proposal for a network of banking hubs, which are designed to help those who feel uncomfortable managing their accounts online.

Customers can use the kiosk to manage their money, with staff from the building society available to help.

"It would be very hard for us to go cashless as a business," says Lauren Evans of ice cream firm Fablas

All 22 are members of the Open Banking network - which lets customers share their financial information with other providers - and include the best-known high street names.

"Every day we get members, charity groups and local businesses saying they are really struggling to do their high street banking," said Shaun Middleton of Principality.

"We think we can bring back high street banking to these communities, to help them thrive and grow."

Aside from two building societies, Cowbridge is due to lose the last of its banks when HSBC closes on a date still to be announced.

The Principality will gauge the success of the Cowbridge kiosk before deciding whether expand to other areas

The nearby Fablas ice cream business might use the new machine as it currently has to order thousands of pounds in pound coins from HSBC about 10 days in advance.

Its ice cream shops around south Wales rely on pound coins to be available in its tills as change when customers buy a £3 cone with notes.

"It will make things slightly easier when it comes to banking cash and taking cash out from the business account," managing director Lauren Evans said.

"We have got an older generation within Cowbridge and banks bring people to the high street, they give people a reason to come out."

"We think we can bring back high street banking to these communities," says Shaun Middleton of the Principality

Ystradgynlais in Powys has just lost its last bank after Lloyds closed last week.

Designer and dressmaker Nicola Ridd-Davies said there was a generational divide over the loss of its banks.

"Younger people are not really using the banks," she said.

"For the older generation, they would prefer more of a face-to-face service. I think it is a shame for the older people in the community that really value that service, and maybe shy away from using digital banking."

Ms Ridd-Davies does not take cash, but said the loss of banks "could affect a lot of retail businesses in Ystradgynlais".

What is the impact of bank closures?

The closure of bank branches has long been a concern, particularly for customers who prefer a face-to-face experience.

The kiosk pilot scheme still requires customers to use digital banking and there is no guarantee it will be rolled out elsewhere.

Older people are particularly badly hit by bank closures, with research by charity Age UK suggesting 58% of over-85s rely on face-to-face banking.

One Banx founder Duncan Cockburn said the machine being piloted could be a "bridge" to helping people use digital banking with the help of building society staff.

"We had a 94-year-old man sign up to online banking for the very first time, simply because he wanted to deposit his cash.

"We hope a lot more elderly people will use this and sign up to online banking for the first time."

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