Cefin Campbell, Plaid Cymru Member of the Senedd for Mid & West Wales, has urged the Welsh Government to prioritise the banking needs of rural areas as the development of a proposed new community bank for Wales continues.
Mr Campbell’s call follows the announcement last month by Barclays bank that it would be closing many branches across Wales – leaving many loyal customers facing long journeys to undertake their basic banking needs.
Recent data from the ONS showed that between 2012 and 2021, Wales saw a 36% drop in the number of bank and building society branches – with rural communities bearing the brunt of these closures. The loss has been acutely obvious in Carmarthenshire’s market towns, such as Llandovery and Newcastle Emlyn, which have since gained the unenviable status of ‘no bank towns’ following a series of closures in recent years.
Analysis earlier this year by consumer group, Which! highlighted that Carmarthen East and Dinefwr had the worst access to banks and ATM cashpoints than anywhere in the UK – with only two banks serving the entire constituency, after 13 were permanently closed since the start of 2015.
In 2021, Welsh Government Economy Minister Vaughan Gething MS committed to support the creation of a Community Bank for Wales, in order to seek to address the market failure in relation to the gap in provision, the effectiveness and the quality of banking services in Wales. The aim would be to provide everyday full retail banking services in communities across Wales by 2023.
Speaking in the Senedd on Wednesday (13 July) Cefin Campbell MS, urged the Minister to ensure many rural communities which had been left high and dry by bank closures would be prioritised in any roll-out of a Welsh Government-backed community bank.
Questioning the Minister, Cefin Campbell MS said:
“Last month, Barclays bank announced that it was closing branches across Mid & West Wales, including Welshpool, Newtown and Lampeter.
“This abandonment has become a very common pattern over recent years. Indeed, there are about 40 per cent fewer branches that now exist in Wales than there were nine years ago. And the impact of this is very great on our rural communities, including the elderly, small businesses, community organisations and farmers in the areas.”
Mr Campbell also highlighted the unique challenges faced by customers looking to bank in rural areas – particularly as a result of the continued poor broadband connection in many areas which makes online banking difficult.
In response, Welsh Government Economy Minister, Vaughan Gething MS, said:
“The vision for the community bank is one that’s got support on all sides of the Chamber, and that in itself is relatively unusual. The challenge, though, I think, is in having not just the vision, but then being able to do something where we’re able to provide real-life banking services that people will want and will use, and also that we’re able to have a programme of opening the physical branches that matches the actual capability.”
