Ann Davies

I am so sorry, but I am going to finish. Restricting access to cash also affects many of those living in rural and post-industrial areas. As the Financial Conduct Authority has noted, digitally excluded older people, people in poor health, those with lower financial resilience and those with lower financial capability depend more on cash. We have seen that play out in my constituency, where we have recently experienced the closure of the last bank in the town of Ammanford—a Lloyds Bank on Quay Street. The closure will leave Ammanford—a town with an area population of 23,709—without a full-service bank branch. It will impact not only the town itself but the surrounding communities of Brynamman, Glanamman, Tycroes, Llandybie, Betws and the wider Amman valley. The decision demonstrates a worrying lack of understanding of the needs of rural and post-industrial communities. For many, online banking is not an option. For example, broadband coverage in Carmarthen is significantly below national standards. Gigabit in Carmarthenshire is 41% compared with 78% in the UK. Superfast broadband is 85% compared with 96% in the UK. Those figures demonstrate that large parts of the county, including Ammanford and its surrounding villages, lack access to the high-speed internet that is required for secure and consistent digital banking. In practice, that means that online banking is unreliable or inaccessible for many households. Mobile banking apps do not function properly, especially in areas with poor signal and slow connections. Digital alternatives cannot replace in-person services, especially for vulnerable groups such as older adults, those with disabilities and people managing complex financial needs. A significant proportion of residents are elderly, vulnerable or without access to transport, and the prospect of travelling long distances to the nearest branch is unrealistic and unjust. I have had many constituents contact me to express their deep concern about the closure of the Lloyds branch. One constituent told me: “We really desperately need this facility now. I don’t think any consideration has been given to the disabled, elderly, or even younger people who cannot travel to other towns. Although I understand the Post Office will absorb some customers, it does not provide all banking needs.” He continued: “I understand why the banks have to close some branches, but Lloyds’ support in the past has been invaluable to this area. With a brain-injured partner, it is nearly impossible to travel to Gorseinon. This would be a major trip causing unnecessary distress and anxiety for him; disabled parking in Gorseinon doesn’t meet his needs either.” Cash has a social value, too. Another constituent said: “I’m old school and still like to have cash—giving my grandchild pocket money, giving tips if I go out, taxis—the list could go on.” It is clear that cash does not just facilitate economic exchange; it creates bonds and ties within communities, an aspect that is important to smaller and rural areas. Where do we go from here? The Federation of Small Businesses Wales has said: “While it is unrealistic to expect a return to high street banks on every street, it is important that new models are further developed—such as banking hubs—to ensure that these services are available locally.” Banking hubs are a key alternative to communities that have lost access to bank and building society branches. They offer easy access to face-to-face cash and banking in the communities that have lost their bank branches. I welcome that the Government have pledged to establish at least 350 banking hubs across the UK. In Wales, there are 12 shared banking hubs, with more in the process of being set up in Gorseinon and Caergybi—Holyhead. However, I note that none are in my constituency of Caerfyrddin—not one. The Financial Services and Markets Act 2023 gave the Financial Conduct Authority responsibility for maintaining cash deposit and withdrawal access, although not wider banking services. The FCA’s rules came into force in September 2024. Those rules require banks not to close their services in communities until they have carried out an assessment showing that the closure would not impact withdrawal and deposit services in that area. Those assessments are conducted by Link. While such a safeguard is welcome, the process itself seems to overlook rural and post-industrial areas. It does not allow for discretion to be applied to consider the needs of those communities. For instance, in the case of Ammanford, Link assessed that there was no need for additional services like a banking hub, given that Ammanford did not meet the population threshold of 10,000 people living near the high street. It said that Ammanford had 7,444 adults living nearby, which is still a significant number, but 23,709 people live in that surround. As we know, in post-industrial areas, the town merges into the villages—or the villages merge into the town. Residents have made it clear that they are finding it incredibly challenging losing their only banking facility. A petition is being circulated in response to the decision, and it has already gathered hundreds of signatures—I urge all in the Chamber to share my online petition. I urge Link to engage with local stakeholders, including businesses, councillors and residents, to ensure that the assessment reflects actual community needs, including by establishing a banking hub in the town of Ammanford. Can the Minister set out how the Government can accelerate the establishment of banking hubs in rural and post-industrial communities as part of their plans? What recent assessments have been made of the adequacy of the cash access review process to account for the unique needs of those communities? Banking hubs are a lifeline for communities that are already under strain. We need prudent policymaking in this area from the Government, so that constituents like mine are not overlooked for such important services. Diolch yn fawr, Cadeirydd.