Leominster and Bromsgrove bank closures have residents and firms worried

Residents and business owners in several towns have expressed concerns about the recent series of bank closures. One shopkeeper warned that this could create a domino effect on the high street, leading to the closure of more businesses. This situation highlights the growing tension between traditional banking and the shift towards digital solutions.

Lloyds Bank recently announced that its branches in Leominster, Kidderminster, and Bromsgrove will close later this year as part of a plan to close 136 branches. The bank stated that the decision to close branches was made because customers are gradually moving away from in-person banking services and towards using mobile banking services. This shift is forcing banks to re-evaluate their physical presence.

Grocer Mark Parry is concerned that bank closures may lead to the demise of cash transactions. He stated: "I think we need to keep cash going. Customers like using cash, they do use cash, and we accept cash." A banking hub will be established in Leominster, which is a space shared by multiple banks, offering basic personal and business banking services. This initiative aims to mitigate the impact of branch closures on the community.

Mr. Parry's fruit and vegetable shop, Parry's Fruit and Veg, uses Lloyds Bank for its business banking. He stated that he will have to use the post office or the banking hub to deposit business income due to the bank closure. "It's a great shame because we would pay the cash in there every week," he said, referring to the Corn Square branch. This change will undoubtedly add inconvenience to his business operations.

Janet Griffiths, who has been banking with Lloyds for 50 years, spoke about how the bank closure will affect her. "I don't use online banking, I don't like it, I don't trust it." Her sentiment reflects the concerns of many who are not comfortable with or do not have access to digital banking services. The closure of physical branches disproportionately impacts these individuals.

In Bromsgrove, Worcestershire, four banks have been lost in the past three years, and the town's Halifax branch is also scheduled to close in May. The town's councillor, Bradley Thomas, recently launched a petition calling for the creation of a permanent banking hub to ensure that people can still conduct face-to-face banking. This highlights the community's desire to retain access to traditional banking services.

Banking hubs offer basic services and cash access, shared by multiple commercial banks, which take turns providing services throughout the week. Lilith Holsey-Sheppard, co-owner of Butcher's Block, told BBC Hereford and Worcester that the closure of bank branches will "change the landscape" and have a "knock-on effect" on the high street. "Because some people prefer to go to the bank to deal with their money, my mum's one of them. It's a social thing as well as a financial thing." This underscores the social and economic importance of physical bank branches.

Resident Warren Palmer stated that he believes there should still be the option to speak to someone face-to-face because people rely on going to the bank to sort out any issues in person. "Online banking is alright, but it's an option, not the only way... I prefer to go to the bank." His preference highlights the value that many people place on personal interaction and the ability to resolve complex issues with the assistance of a bank teller.