Claudia Malallah
Claudia Malallah
21 May, 2025
News

Chamberlain raises need for access to Banking services in North East Fife

Wendy Chamberlain, MP for North East Fife, yesterday raised the need for better banking services and access to cash in North East Fife.

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Following the closures of several banks across North East Fife, local communities have been left with limited access to cash. In 2023 Parliament passed the Financial Services and Markets Act 2023 (FSMA 2023) which gave the FCA responsibility to maintain cash access. The FCA’s rules, which came into effect in September 2024, require banks do not close services until they have carried out an assessment that the closure would not impact withdrawal and deposit services in the area.

Speaking during Treasury Oral Questions, Chamberlain said: “Access to banking services is a particular issue in North East Fife, where the limitations of the Access to Cash legislation is becoming clear.

Wendy Chamberlain MP writes to the Economic Secretary raising the obstacles in accessing cash.
Wendy Chamberlain MP writes to the Economic Secretary raising the obstacles in accessing cash. Credit: Wendy Chamberlain MP

“Will the Financial Inclusion Committee agree to look at the act to ensure that we get the access to banking services that local communities need?”

Responding, Emma Reynolds MP, The Economic Secretary to the Treasury, said: “Our government secured the commitment of the banking industry to roll out 350 banking hubs across the country, 200 have already been agreed and over 150 are open.

“The Financial Inclusion Committee that I am chairing is looking at financial inclusion, including digital banking and making sure that people have the bank accounts that they need.”

Following the exchange, Chamberlain wrote to the Economic Secretary to provide further context to her question. The letter raised three specific threads to the issues arising:

  1. Improvements which could be made to the current regulations.
  2. Highlighting that the current powers given to the FCA are insufficient for maintaining access to cash.
  3. Raising the challenges with broadband and mobile connectivity which, coupled with an older population, makes digital banking a challenge for many across North East Fife.

Commenting after the exchange, Chamberlain said: “I am glad that the Government are rolling out more banking hubs, but this clearly isn’t enough.

“My constituents across North East Fife, from Leven to Cupar, have expressed their frustrations to me about not being able to access cash, whether they need it for their business, to pop inside a birthday card, or because they aren’t able to use online banking.

“Whatever the reason, people should be able to access their cash easily without having to travel to other towns or risk showing up to an ATM that is empty.

“I have now written to the Economic Secretary to highlight these issues and hope to hear back soon.”