'Elderly and vulnerable 'deprived' as not 1, but 2 banks are due to shut in Strood Town centre this spring' - say Medway Liberal Democrats

Medway Liberal Democrats are supporting a campaign to keep a bank in Strood town centre. NatWest announced the closure of its Strood branch in March 2024, with Lloyds closing its branch in April. We are concerned that the closures will leave residents and businesses in Strood and the surrounding area without local banking services - they will have to go into Chatham.

Liberal Democrats are calling on both banks to reverse their decision to close its branch, and to retain banking services for local residents and businesses in Strood now and into the future. To show the strength of feeling in our community for retaining in-person banking services, we are calling on LINK to explore setting up a banking hub in the area, and we will keep residents updated as things progress.

Alan Wells, spokesperson for Medway Liberal Democrats said, "I have been deeply concerned that both Lloyds Bank and Natwest are to close their Strood branches. This will be a bitter blow for residents and businesses alike, and will 'deprive' the elderly and vulnerable of banking services. There are many factors in play in Medway that mean people cannot just travel to another branch or go online, and this assumption is not inclusive of an ageing population.

You may not have the physical mobility to travel, even if you actually have transport options where you live, which we know is not universal. There is also the affordability of transport, which people may not be able to justify in the current cost of living crisis. It also overlooks people with caring responsibilities, where the health of their loved one may make the trip unviable.

Many people I have spoken to feel they have been cut adrift and left struggling to access basic banking services at a time when money worries are rife, plus this is another blow to the vibrancy of Strood high-street. The closure of the 2 banks will create a banking desert until you reach Chatham.  This will have a chilling effect on local communities, on residents and on independent businesses.

Local people are deeply concerned that the closure of the branch will impact disabled and older residents most severely. Some of these residents will be able to move to online or telephone banking, but some will not. Those unable to make the switch over to virtual banking are those residents who rely on in-person services and are most likely to find it difficult, if not impossible, to travel into the centre of Chatham for their banking.

Both Lloyds and Natwest therefore should reconsider their decision to close their branches, given the far-reaching impact this choice will have on our local residents, businesses and community at large. There is a clear desire in the community to fight these closures. Access to cash and in-person banking is still essential, especially in rural areas like Hoo Peninsula with a large elderly population and poor internet access. The way big banks are treating customers is a disgrace, they make billions of pounds a year in profits. This isn’t about financial viability, it's pure greed at the expense of loyal customers.

While many consumers have embraced digital banking, there are still millions, including the elderly, vulnerable and isolated, who aren't yet ready or willing to make that switch - and they must be protected. Liberal Democrats will continue to make the case to Natwest and Lloyds and oppose the closures all the way. Everyone needs a bank. It’s impossible to live without one. It doesn’t matter where or how you live, everyone needs access to banking services.

But banks are not supermarkets. Consumers cannot switch seamlessly between them. Closing a bank branch means customers, most likely the elderly or the disabled, may have to travel for hours on public transport to make withdrawals or access services. People who live in rural areas like the Hoo Peninsula should not be subjected to harsher conditions than people who live in urban ones."

If closure of both branches is inevitable, Liberal Democrats  are calling for a commitment to either mobile branches or using shared community or hub spaces. This could enable several banks to share a facility, reducing costs and maintaining a physical presence in communities. This has been achieved in several places, obviously keeping the branches open is the best outcome for Strood, its high street and its community.  

ENDS

ADDITIONAL TEXT FOR EDITORS:
Although many older people use online banking, significant numbers are unable or unwilling to manage their finances online. Some live in areas of poor broadband connection or do not have the appropriate devices – or the money to buy them.

It’s not just the actual banking site or app, it involves email accounts, smart phones for multi-factor authentication, ATM’s that people may not have the capacity to use. Not being confident with technology increases concern about scams, of which you are more at risk of as you get older. It also removes another reason to visit your community and the physical and social health benefits this provides, fuelling issues such as loneliness.”

A review by the British Bankers Association found banks are not doing enough to support older customers in the face of widespread branch closures.

Age UK is calling for improvements to the new Financial Services and Markets Bill to protect older customers, many of whom rely on face-to-face banking. While the Bill includes specific safeguards for depositing and withdrawing cash, the charity wants assurance that other banking activities such as starting bereavement procedures, arranging third-party access and opening a new account – all services available in-branch – have the potential to be protected in future.

The charity is  also asking for local banks to act responsibly and consider vulnerable customers and their role in the community, which include:  A branch closure impact statement (these are obligatory under the BBA Branch Closure Protocols) and analysis for of customers who will be impacted.

Proactive, personalised arrangements for each of its stranded customers, in terms of helping them move to ‘suitable alternative services’. Where this involves digital migration, to ensure local, face-to-face support is in place.

A post-closure assessment – i.e., to find out in the months after a closure how their stranded customers have adapted and what lessons can be learned from the post-closure experience.