Spotlight on Bank Closures and Rural Communities

Bank closures and their impact on rural communities were firmly in the national spotlight last week, with the issue debated in Parliament and discussed on Sky News.

Ahead of the debate, RSN Chief Executive Kerry Booth joined Sky News presenter Matt Barbet to highlight the specific challenges faced by rural residents and businesses as more high street banks shut their doors.

Kerry stressed that while the decline of high street banking affects all areas, the consequences are “felt much more keenly in our rural areas” where poor transport links and connectivity can make alternative banking options difficult to access.

She pointed out that although the growth of online banking is driving many closures, not everyone can switch to digital services—particularly older residents, people on lower incomes who rely on managing their budgets with cash, and businesses needing to deposit or access cash regularly.

Kerry said, “You might want to do a transaction online, but the reality is you need to run down the end of a lane up a hill to get that mobile phone two-step verification to enable the payment to go through.”

Kerry also underlined the serious impact on rural businesses, many of which are sole traders or small enterprises. “For them, the ability to deposit cash, to get cash out, is really important,” she said. “This government is focused on growing the economy, and we need to make sure we enable that rural economy to exist, to grow and to thrive as well. The lack of banking opportunities can really limit that for those in rural areas.”

In Parliament later that day, MPs from across the political spectrum echoed many of these concerns. The debate recognised that while banking hubs—a new model where basic services are shared across banks—offer a helpful solution, their roll-out remains limited compared to the scale of branch closures. Over 400 bank closures are anticipated this year, and hubs currently number around 150.

MPs also called for more flexible criteria to be used when assessing community need for banking hubs, with several speakers noting that current rules do not always reflect local transport challenges or the realities of rural life.

Kerry closed her interview by urging MPs to recognise the compounded impact of bank closures in rural areas, where poor transport, limited connectivity, and ageing populations can make access to cash and face-to-face banking even more vital.

Read the Parliamentary Debate Transcript here.

Read the Transcript of Kerry's Discussion on Sky News Here

We would like to hear your views:

How is your community being affected by bank closures and the introduction of banking hubs?

Are local businesses and residents able to access the services they need?