We’re facing a growing banking crisis in mid Wales, writes Cefin Campbell MS.
Over recent weeks we’ve had further announcements from high street banks of their intention to close valued branches in towns such as Welshpool, Newtown and Llandrindod – leaving customers and businesses high and dry.
These most recent abandonments aren’t a new phenomenon – statistics show that between 2012 and 2021 there was a 36% reduction in the number of bank branches in Wales. This decline has been particularly pertinent in rural areas – with many market towns such as Rhayader, Llanfyllin and Machynlleth since gaining the unenviable status of ‘no bank towns’.
Whilst there’s no denying recent years have seen a growth in online banking, the retreat of banking services from our towns has inevitably caused significant inconvenience for many – and too often have been a hammer blow for our already struggling high streets.
The elderly and vulnerable are faced with long journeys to other towns and businesses often have to close earlier to allow time for banking duties. Meanwhile, many rural areas – still blighted by archaic broadband connections – often struggle to undertake the simplest of duties online.
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This intensifying trend of banks deserting our towns confirms the failing nature of our traditional banking model. This is a particularly sad moment for Mid Wales, particularly when considering our proud banking history, and financial pioneers such as Lloyds of Pontrobert.
Whilst I cautiously welcome the recent development of a LINK banking hub in Welshpool – the first of its kind in Wales - Plaid Cymru have long called for a new approach to banking that respects our communities. In particular, I welcomed an announcement earlier this year by the Welsh Government of their commitment to roll-out a community bank for Wales – Banc Cambria. The initiative, developed alongside the Monmouthshire Building Society, will aim to provide everyday full retail banking services in communities across Wales by 2023.
As details of this new initiative and details are ironed out, I was pleased to have the opportunity last month to challenge the Economy Minister in the Senedd to ensure that the banking needs of rural areas – are prioritised in any proposed roll-out. I do hope the Welsh Government will adhere to such vision and that this exciting proposal will soon be able to support our rural towns in Powys.
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