A leading regional newspaper says wholesale closure of bank branches has had harmful consequences for communities across Britain.
Greg Wright, award-winning Deputy Business Editor of the Yorkshire Post, used the paper’s Business Voices column to highlight the distress caused for people with disabilities by bank closures.
Greg quotes a survey by Which? showing that more than half the bank customers who have disabilities feel that branch closures have negatively affected their ability to access vital services.
“Digital banking is here to stay and it’s unsurprising that some branches have been considered surplus to requirements,” Greg states.
“But the wholesale closure of branches has had harmful consequences for communities across Britain.”
Greg notes that financial firms have a legal obligation under the Equality Act 2010 to ensure people are not excluded. He adds that the Financial Conduct Authority (FCA) also sets out guidelines for financial firms to follow when dealing with vulnerable customers.
In addition a new consumer duty due to be introduced by the FCA this summer will require firms to support staff in identifying signs of vulnerability and set up systems that enable customers to disclose their needs if they choose.
But Greg says that since January 2015 Britain’s banks and building societies have closed – or announced the closure of – 5,695 branches.
He said: “These closure have been a hammer blow to loyal disabled customers who preferred to do their banking face to face.”
The Which? study found that 35 per cent of people surveyed find it “fairly or very difficult” to speak to their bank over the phone and 21 per cent struggle with security features such as card reads or passwords.
New security checks for online card payments, known as strong customer authentication, proved problematic for 39 per cent of those surveyed.
Which? called on the banks to consider the impact on disabled customers before they close physical branches.
Greg said: “The ball is now in the regulator’s court. The FCA must monitor the conduct of the major banks. Have they honoured the spirit of the new consumer duty rules? And if not, what steps will be taken to ensure the needs of disabled customers are respected?”
