Dr Neil Hudson MP met with Cumberland Building Society CEO, Des Moore, to discuss the state of high street banking services and stand up for savers amid local bank closures.
With a spate of high street banks closing in Penrith, Dr Hudson has been proactive in his support for the sector and has since campaigned to change Financial Conduct Authority (FCA) rules on banking hubs; supported new building societies legislation and met with the CEO of the Cumberland Building Society which is remaining open.
Thanking Mr Moore for bucking the national trends with his commitment to maintaining high street services, Dr Hudson also discussed how they could work together to better provide accessible banking services in an area with transport and digital connectivity challenges.
Indeed for rural people it can be hard to access digital services or travel long distances to banks in larger towns and cities - especially so for vulnerable people with additional needs. As such, Dr Hudson reaffirmed his commitment to backing in-person financial services on the high street.
So, in order to better support building societies across the nation, Dr Hudson is supporting the Building Societies Act 1986 (Amendment) Bill that would enable building societies to raise more funds from sources other than savings, thus levelling the playing field with banks and helping to support more savers onto the housing ladder.
The Building Societies Association has very much welcomed the Bill, which is receiving Government support, as it will facilitate building societies' capacity to lend more into the economy and drive competition in the mortgage market.
Back in Westminster Dr Hudson has also joined a cross-party campaign to change FCA rules to ensure LINK can step in earlier to provide banking hubs when high street banking services faulter. This moves away from the current 'last bank in town' model where banking hubs are not implemented until it is too late, often leading to an unnecessary transition period where consumers are unable to access financial services.
The FCA's CEO Nikhil Rathi has since responded to Dr Hudson's concerns, saying “more must be done to… speed up delivery of new cash solutions to close any gaps in access”. Taking Dr Hudson's comments on board, Mr Rathi, made positive overtures and said he will publicise the FCA's final banking hub rules in the third quarter of 2024. Dr Hudson remains optimistic his campaign will yield positive results.
Dr Neil Hudson MP said:
"Local bank closures have been incredibly dispiriting - especially for my many constituents dealing with digital connectivity challenges and long journeys to their next closest branch.
"That is why I am incredibly thankful to Des Moore and his team at the Cumberland Building Society for sticking with fully-staffed banking services on the high street. This is so important for us in rural areas and especially for vulnerable people who benefit so much from talking to real people rather than automated web-chats or phonelines.
"In Westminster I have been fighting for high-street services with reforms to building society laws and FCA banking hub rules. Having now received a reply from FCA bosses, I am optimistic we will see proactive action on the issue, moving away from the 'last bank in town' model, instead genuinely considering each community's case based on its access to cash.
"It goes without saying changes won't be imminent and in the meantime I will continue banging the drum for high street banks. If any residents are especially concerned about their own access to banking services, please do get in touch and I and my team will be happy to help you."
