Concerns Raised Over Impact Proposed Bank Closures Will Have on Local Communities

Concerns over the impact continued bank closures will have on local communities have been raised following HSBC’s announcement to close more local branches.

Earlier this month Wrexham.com reported that HSBC had announced plans to close its Caergwrle branch on December 9th- leaving Wrexham Town Centre’s bank the nearest for many customers.

In a letter sent to customers on August 17th HSBC cited ‘increase in telephone and online banking’ as the reasons for the closure of the Caergwrle branch.

The news has prompted concern from North Wales Assembly Member Mark Isherwood, who has written to HSBC highlighting the impact the closure will have on local communities.

In his letter to the bank highlighting concerns regarding the proposed closures, he states: “This is particularly worrying in the context of the Access to Banking Protocol, given that HSBC’s Caergwrle Branch is also the nearest Branch of HSBC (or any Bank) to my own home and community.

“As with your previous Branch closures across North Wales, it is reported that HSBC again blames a rise in telephone and internet banking, although concerns have once again been raised by constituents regarding the impact this will have on them and their communities. They believe that we instead need to take a longer term, truly customer-focused approach.

“Having an accessible local Branch is important for older people, those without transport, those without internet access, shopkeepers and small businesses. It is very difficult for many customers to travel to those Branches which remain in other locations.”

He continued onto say: “In March 2015, the UK Government and the British Bankers Association entered an agreement that commits banks to working with local communities to establish the impact of a branch closure prior to the closure, finding suitable alternative provision to suit individual communities and putting satisfactory alternative banking services in place before a branch is closed.

“In May 2015, the Access to Banking Protocol came into effect to help minimise the impact of bank branch closures on customers and local communities, requiring a pre-closure assessment, outlining consultation and community engagement requirements prior to a branch closing, stipulating an assessment of the impact of any proposed closure on the wider community, including businesses, and ensuring continued provision of alternative ways to bank.

“In an August 2015 letter to the British Bankers Association (BBA), the UK Government outlined its position, stating: ‘Branch closures continue to be a matter of concern for consumers and small businesses in affected communities…it is important that closure decisions are made responsibly, and that efforts are made to provide adequate alternative banking arrangements reflecting local circumstances—including small business needs—before a branch closes.”

In his letter Mr Isherwood continues onto comment about a June 2016 House of Commons debate regarding bank closures and the damage they cause to local communities, small businesses and the welfare of senior citizens.

He added: “I would therefore be grateful if you could give consideration to the concerns raised about HSBC’s proposed closure of its Branches in Ewloe and Caergwrle in this context and provide a response accordingly.”

The announcement follows a series of HSBC bank closures, with branches in Ruabon and Chirk closing in April.

(Picture – Google Maps)