The Post Office has handled a record amount of cash as customers continue to flock to its branches following the closure of thousands of Britain’s high street banks.
Customers have been forced to use the Post Office in many cases because it is the only option available to them after 6,000 bank branches shut their doors since 2015.
The rate of closure has been around 50 branches a month, and it shows no sign of slowing down as customers continue to gravitate to online banking.
However a sizeable portion of the population continues to need access to brick and mortar banking, causing them to use the Post Offices basic cash handling services.
In July customers deposited or withdrew more than £3.7bn, which beats previous record highs set in May, April and December.
The Post Office handled a record amount of cash in July as customers continue to flock to its branches following the closure of thousands of Britain’s high street banks (stock image)
Customers have been forced to use the Post Office in many cases because it is the only option available to them after 6,000 bank branches shut their doors since 2015. Pictured: A closed Lloyds bank branch in Plymouth, Devon
A sizeable portion of the population continues to need access to brick and mortar banking, causing them to use the Post Offices basic cash handling services (stock image)
Around 10 million visits are made to the Post Office each week in the UK, and many of them are using it as a local alternative due to real bank branches disappearing.
Consumer group Which? said the number of bank branches that have closed since 2015 equates to over 60 per cent of the UK network.
In May MailOnline revealed that by the end of this year, 33 parliamentary constituencies will be without a single bank branch – such as Bolton West, York Outer, Newport East and Reading West.
Others include Barnsley East, Warrington North, Glasgow North East and Swansea East.
Some locals reported they needed to take two buses to get to their nearest bank, while others claimed the closures were about ‘control and monitoring people’s finances’.
Elderly people have been left feeling isolated by closures – with some not being online, worrying that using ATMs is unsafe and not wanting to bank on their phones.
While the rate of closures had initially appeared to slow down since it reached a peak in 2017, the researchers said that in ‘recent years there has been a troubling surge’.
Despite the lack of access to cash, some firms insist on cash payments to avoid paying bank charges
Bank and building society losses from January 2015 to the end of 2025 (including scheduled)
Bank bosses have been accused of ‘engaging in a race to close branches’ after the Government announced plans in 2020 for laws to protect access to cash, which could make it harder to close a branch if alternative cash provision is lacking.
In an effort to provide service, banking hubs have begun to crop up in towns that have lost their last bank branch.
They are community banks that, under one roof, offer basic services for personal and small business customers of all the mainstream banks.
Their set-up costs are funded by the big banks via an organisation called Cash Access UK and are run by the Post Office.
Staff from the big banks are on hand once a week to offer face-to-face advice. So far, 147 have been given the go ahead although only 71 are open for business (finding suitable premises is often a nightmare).
But Which? said the ‘rollout is progressing too slowly’, adding that this total was less than half of the recommended 130 banking hub locations to have opened so far.
The Post Office has an agreement with many banks, allowing their customers to carry out everyday banking over its counters.
Prior to the election Which? said it believes that the next government should commit to delivering at least 200 shared banking hubs in the first two years of government.
Pictured: A closed Natwest branch in Victoria, Westminster, London
A closed Halifax branch in Maidenhead, Berkshire
A closure notice for a Santander branch in Harwich, Essex
A map showing the constituencies that are set to have no bank branches by the end of the year
It added that as bank branch closures are likely to continue in the coming years, any target may need to be revised upwards to keep pace.
Sam Richardson, deputy editor of Which? Money, said in May: ‘This milestone of more than 6,000 bank branch closures in just nine years underscores the seismic shift that has taken place in terms of our banking habits and the character of the British high street.
‘While some may hardly notice the closure of their local branch as they seamlessly switch to online banking, for others reliant on face-to-face services, the impact can be disastrous.
‘It’s not about halting closures altogether, but ensuring that essential banking services remain accessible to those who still rely on them.’
Which? also pointed out that some banks still insist on customers coming into the branch to carry out services such as registering power of attorney.
It added that several high street banks have fared poorly when registering power of attorney, with waiting for in-branch appointments potentially adding delays to the process – and banking hubs not always offering such services.