A further 13 locations have been earmarked for shared banking hubs to ensure services are available in areas where the last bank branch has closed.
A series of branch closures have raised concerns about access to cash for those who need it and difficulties for small businesses trying to deposit revenue.
Ten other areas have previously been identified, but the doors to one of their new hubs have yet to open.
Ministers have drawn up legislation to ensure local people have access to cash.
Of the 13 new proposed banking center locations, four are in Scotland and, for the first time, one in Northern Ireland, in Kilkeel.
They will be at Brechin in Angus, Forres in Moray, Carluke in Lanarkshire, Kirkcudbright in Dumfries and Galloway, Axminster in Devon, Barton-upon-Humber in Lincolnshire, Lutterworth in Leicestershire, Royal Wootton Bassett in Wiltshire, Cheadle in Greater Manchester, Belper in Derbyshire, Maryport in Cumbria, Hornsea in Yorkshire and also in Kilkeel.
- The decline in cash use is easing after the pandemic hit
At these hubs, operated by the post office, customers of any bank can access their accounts, deposit cash and checks and withdraw money at any time. More tricky inquiries are handled by a representative from each of the major banks, who visit once a week.
The BBC visited a prototype shared banking center in Rochford, Essex, and learned it had been “a lifeline” for many people living in the area after the last branch in the town closed.
The running costs are the same as a small branch, but are shared by different banking groups that use them.
Natalie Ceeney, Chair of the Cash Action Group, which oversees the project, said: “Cash is still of enormous importance to millions of people across the UK and with the cost of living crisis, more and more people are turning to cash as an alternative to cash effective budgeting. Banking hubs are an important part of the solution.”
Every time a core banking service such as an ATM or bank branch is closed, an assessment is made by Link – the organization currently overseeing the UK ATM network.
The review examines the community’s cash needs, such as how easy it is to get to the nearest alternative service, and the demographics and vulnerability of local residents. The criteria are set by a group of banks and consumer representatives.
The most recent locations were identified as part of this work.
However, it may be months before these new hubs open. As well as finding a suitable location, changes are often required to ensure it is fully accessible and secure enough for banking services.
It has been criticized for not starting services at any of the previously announced bank center locations, save for the two test buildings at Rochford and Cambuslang in Scotland.
A spokesman for the Financial Conduct Authority said: “Companies need to pick up the pace and deploy more banking centres. We expect that to happen as a matter of priority.
“Banks and building societies must treat their customers fairly and offer alternatives to branches if necessary. Banking hubs are among a suite of tools they can use to ensure communities have easy access to banking services and cash.”
In addition to the hubs, withdrawal and deposit machines, which are unmanned but can allow businesses to redeem their earnings, will be placed in libraries and community centers and will be available during their opening hours.
They are at Swanley and Faversham both in Kent, Holywood in County Down, Shanklin on the Isle of Wight, Atherstone in Warwickshire, Billericay and Dunmow both in Essex, Bourne in Lincolnshire, Holyhead on Anglesey, llfracombe in Devon, Swanage in Dorset and Wallingford in Oxfordshire.
The government has planned to introduce new laws to ensure people only have to travel a relatively short distance to access cash withdrawal and deposit services.
This is seen as critical to the future of cash and particularly its acceptance by businesses in rural communities who are currently finding they are closing and having to travel miles for their nearest banking services.
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