Bank closures driving cash service demand at the Post Office

Local bank branch closures across the UK are increasing the demand for access to cash deposit services at the Post Office, according to a new study.

The University of Bristol study found that one in 10 UK Post Offices had been affected by a nearby bank closure, resulting in a 27 per cent rise in demand for cash deposit services.

Nationally, 800 banking branches have closed between April 2021 and March 2022, directly affecting deposit volumes in nearby Post Offices. The study found that the majority of closures took place in urban areas and cities which had a higher number of bank branches.

The study also showed that more banks shutting the doors of local branches during a time of post-lockdown economic recovery further increased demand for Post Office services. Three bank branch closures in the same area, for example, resulted in a 58 per cent rise in the number of deposits made at nearby post offices.

Rocio Concha, Which? director of policy and advocacy, called for legislation to protect access to cash said: “The government should pass the Financial Services and Markets Bill as quickly as parliamentary time allows, giving the Financial Conduct Authority the appropriate powers to oversee the framework of the country’s cash system, including determining a local community’s access to cash needs based on geographic distances, as well as holding banks to account.”

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