The FCA asks banks to reconsider branch closures during coronavirus lockdown

A spokesperson for UK Finance, the trade association for the UK banking and financial services sector, said the industry remained committed to supporting customers through the Covid-19 crisis.

The Financial Conduct Authority is urging the banks to reconsider their branch closure programmes during the lockdown to ensure vulnerable customers can still have access to cash.

Concerns about elderly people, rural and deprived communities being cut off from cash had been mounting before the coronavirus pandemic struck.

In recent months, a number of major banks have announced branch closures, a move which has been at least partly due to the shift to online banking.

In September last year, the FCA said it expected banks, building societies and credit unions to keep it informed of any plans for closures or conversions “in good time” before any final decision is made.

In its latest statement, the FCA said: “In September 2020, we published guidance on branch closures and ATM closures and conversions.

“The guidance supports our consumer protection objective and is designed to protect consumers by setting expectation that firms should assess customer (consumer and SME or micro-enterprise) needs and consider the availability and provision of alternative arrangements where closures or conversions are planned.

“Our principles for businesses require firms to treat their customers fairly, and communicate with them in a fair, clear and not misleading way. We expect firms to exercise particular care with vulnerable customers.”