A SCOTTISH community which has been campaigning for more free-to-use ATMs is at the centre of a 'new model for high street banking' plan to boost access to cash which could be rolled across the UK.

The new hope for high-street banking, funded by the banking industry comes in the form of brand new five-banks-in-one hub hosted by the Post Office which are now being tested in Cambuslang and Rochford in Essex.

The schemes fronted by Community Access to Cash Pilots Board chairman Natalie Ceeney being launched today (Weds) will offer access to basic banking and cash withdrawals and deposits through a counter operated by the Post Office, which will support the customers of all major retail banks.

In Cambuslang, the pilot BankHUB - a new form of joint bank branch supported by the Post Office sees each of the five banks take it in turns to provide services on weekdays.

RBS will be available on Monday, Santander on Tuesday, Virgin Money on Wednesday, Bank of Scotland on Thursday and TSB on Friday.

It will be officially opened in a special ceremony this morning.

The Community Access to Cash Pilots (CACP) initiative, supported by the major banks, consumer groups, and groups representing small businesses, say it will provide access to face-to-face community banking services and allow the privacy and security people will expect from a branch.

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CACP say that the hubs could be rolled out nationwide, although legislation will need to be passed by the UK Government.

The hubs have been set up, with dedicated rooms where customers can see staff from their own bank and offer access to basic banking and cash withdrawals and deposits through a counter operated by the Post Office.

They will also provide access to face-to-face banking services, provided by those banks which have the most customers in each area.

The Cambuslang hub, supported by the community council, is based in an empty retail outlet and comes after locals found that the existing post office was difficult to do transactional banking services because people were queuing and using wider services such as posting a parcel.

Cambuslang, the Lanarkshire town of 25,000 people, found itself at the forefront of the fight for better access to cash three years ago.

It went from having three bank branches to having none in the space of 18 months from 2016. At the same time the number of cash machines dropped from four to two.

The pilot organisers say that since 2018 the town has become "unbanked" with some parts of the area in the bottom 20% of the Scottish Index of Multiple Deprivation.

The Stirlingshire village of Denny is also involved in a series of other Community Access to Cash Pilots with seven other community across the UK.

It will be trialling the provision of cashback without purchase offered by PayPoint convenience stores as well as providing new digital education services to help those who want to access digital banking services.

READ MORE: South Lanarkshire town that was left with no banks

CACP say that the moves have been sparked by ATM and bank branch closures, as well as the impact of the coronavirus pandemic, which have sparked concerns about the future of cash.

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Recent research from the Financial Conduct Authority (FCA) found that, during the pandemic, 15% of UK adults have struggled to cope without access to bank branches and ATMs, while 16% suffered as more businesses stopped or encouraged customers to use contactless or digital payments.

FCA research suggests that five million people remain dependent on cash.

The pilots will run until October 2021 and then will report back their findings.

Ms Ceeney said: “Many more people are shopping online and using digital or contactless payments now, even for items that they would have paid for with cash before the pandemic.

“However, cash remains critically important, not only as a back-up when payment systems go down, but for millions of people who can’t use digital payments, don’t have reliable broadband or mobile coverage, or simply cannot afford or don’t have access to wider banking services that many of us take for granted.

“I’m delighted that the pilots are up and running, and am keen to see what local communities think of the new services.”

She added: “I look forward to seeing the results from the pilots, but we urgently need the Government to publish its promised next steps to protect access to cash, so that, if these pilots are successful, they can be rolled out rather than closed.”

Data provided by LINK, the UK's main cash machine network, revealed that the number of ATMs dropped from 5,866 in November, 2019, to 5,239 in September last year. There were 4022 free-to-use cash machines across Scotland while 1,217 charge - meaning that in one in four of the nation's ATMs you have to pay to get your money out.

In January, research showed that over 2m Scots have been refused payment with notes and coins during the pandemic, threatening the viability of the cash network.

Analysis produced exclusively for the Herald by the consumer organisation Which? in October revealed that nearly half (47%) of the over 1000 bank branches which were open in Scotland five years ago will have shut by next year.

Nick Read, chief executive of the Post Office, said: “Bank hubs are an exciting expansion of our role in safeguarding a sustainable future for cash, as well as providing wider financial services in partnership with the banks.”

Barclays UK chief executive Matt Hammerstein said: “We look forward to seeing the outcome of these pilots to help us continue to provide sustainable access to banking and cash to all that need it.”