Sleaford could get first banking hub as branches close

HSBC is due to shut branches in Gainsborough, Stamford, Sleaford and Epworth next year, with Barclays also planning to leave Sleaford.

It has been revealed that negotiations are in the works to bring the town a banking hub (shared facilities that are operated jointly by different banks).

North Kesteven District Council will also call for a regulator to get more power to stop bank closures which will cause problems for local people.

Banking hubs offer a central place to withdraw and deposit cash and make bill payments, regardless of who you bank with.

Staff from the national banks are also present on a rotating-basis to help with more complex queries, with HSBC, Lloyds, Natwest and TSB among those who have signed up to the scheme.

A full council meeting said it was vital to stop branches from leaving town centres for good.

Councillor David Suiter introduced the motion, saying: “Towns that lose banks tend to deteriorate, going downhill faster.”

Councillor Anthony Brand agreed, saying: “Banking practice has changed quite a bit as a result of lockdowns and Covid.

“It is possible to do very basic banking at post offices. I know that negotiations are going on to reach final agreement for a banking hub in Sleaford.”

Councillor Peter Lundgren said it wasn’t only elderly people or those unfamiliar with technology who needed in-person branches.

“I use online banking for my business, but when I was trying to make a purchase of more than £20,000, had to go into the bank to have the transaction ratified in person,” he said.

“Banks are demanding businesses like mine go in person but are shutting branches and making it more difficult to spend more.

“Whether it’s a particular branch or a banking hub, it’s important we have something available locally.”

Councillor Richard Wright said he agreed with the motion, but understands banks’ reasoning.

“The loss of branches isn’t something we would want to see, but they have to remain viable or people end up with less competition and the end of free banking – something they have raised spectre of before.”

He added the council runs a number of digital hubs to help people who can’t get online.

The amended motion asks the chief executive to write to the leader of all banks to call for any plans to be reconsidered.

The leader will also ask the Chancellor to give the Financial Conduct Authority greater powers to prevent large banks carrying out closures of branches without some replacement.

The first banking hub pilots took place last year, with 25 locations across the UK now confirmed.