LINK, the UK’s cash access and ATM network, has announced that locals and businesses in Kenilworth will soon "find it easier to access banking services" thanks to a recommendation for a new banking hub in the town. 

While the town had not previously met the criteria for a banking hub, the recent FCA rule change led to a reassessment by LINK and the confirmation that a hub will now be provided. 

Kenilworth Town Council had decided to request a banking hub, following the announcement Lloyds will leave town next year.

The new rules build on previous voluntary arrangements put in place by the banking industry and, for the first time, will be enshrined in law.

Banking hubs are a shared banking space, similar to a traditional bank branch, but available to everyone.

The hub will consist of a counter service operated by Post Office employees, where customers of any bank can withdraw and deposit cash, make bill payments and carry out regular banking transactions.

In addition, there will be private spaces where customers can speak to community bankers from their own bank for more complicated matters that require specialist knowledge or privacy. The banks will be working on a rotating basis, so there will be staff from different banks available on different days.

To date, LINK has recommended 167 banking hubs. There are currently over 80 banking hubs up and running in the UK.

The banking hub will now be delivered by Cash Access UK. Over the next few weeks, it will begin to engage with the local community and will start to look for potential sites.

The hub will likely open in 12 months’ time.

The banking hub has been triggered following the closure of Lloyds (image by James Smith)

Nick Quin, head of financial inclusion, LINK: “We’re pleased to recommend this new hub in Kenilworth.

"Many people locally still rely on cash, and this hub will play a crucial role in helping them access it on the High Street. 

"We’re committed to making sure people who use cash in places like Kenilworth have the benefit of a convenient, accessible location to access and deposit cash on the high street.”

Sir Jeremy Wright MP, MP for Kenilworth and Southam: “Many of my constituents need access to banking facilities in Kenilworth in person and I have been concerned for some time about the reduction in bank branches present in the town.

"Bringing in person banking facilities back to Kenilworth would be most welcomed by many who cannot, or do not wish to, bank online.”

Lloyds announced the closure of its Warwick Road branch earlier this year, saying just 511 customers visit in person on a monthly basis.

Councillors have since highlighted how this could leave some residents, charities and businesses vulnerable.

Halifax, HSBC and Barclays have all also closed their local branches.