Post Office has signed a new five-year agreement with Cash Access UK to continue operating Banking Hubs across the UK.

Post Office, which already operates 200 Banking Hubs across the UK, said it would play a key role in the government’s plans to increase the number of banking hubs to 350 by the end of the current parliament.

Banking Hubs are shared banking facilities operated by the Post Office in partnership with major UK banks and funded by Cash Access UK

They provide essential face-to-face services for communities where bank branches have closed, including cash withdrawals and deposits, cheque deposits and bill payments.

Cash Access UK is a not-for-profit company funded by several High Street banks including Barclays, HSBC, Virgin Money and Santander.

The organisation provides cash and basic banking services in communities across the UK such as deposit services.

Cash Access said that cash is still important to millions of people in the UK, estimating that between five and six million adults rely on cash in their day-to-day lives.

Post Office’s new contract, which starts at the beginning of January 2026, coincides with the start of the its new Banking Framework agreement with 30 of the UK’s largest banks and building societies.

These agreements ensure that local communities can continue to access and deposit cash at thousands of Post Office branches across the UK.

Post office said that millions of people and small businesses relying on access to cash every day, adding that its branches and Banking Hubs are increasingly becoming the only place for many local communities and small businesses to do their everyday banking.

In August, the Office for National Statistics (ONS) found that UK banks have closed more than one in three branches since 2019, slimming the country’s High Street network to 6,870 outlets.

This figure represents a 34 per cent decrease from 10,410 sites five years ago, and the retreat is set to continue with another 113 closures by Lloyds, NatWest, Halifax and Bank of
Scotland scheduled before the end of November.

Ross Borkett, financial services Director at Post Office, said he believes the company could open and operate more Banking Hubs for customers in Post Office branches.

“Banking Hubs simply wouldn’t exist without the Post Office’s role in developing and operating them,” he added. “Postmasters are at the heart of their local communities offering outstanding service and are the natural partner to operate Banking Hubs given their expertise when it comes to providing face-to-face everyday banking services. “

With over 11,500 branches, Post Office claims it has the biggest retail network in the UK, with more branches than all the banks and building societies in the nation combined.

The company estimates that 99 per cent of UK bank customers can access their accounts at their Post Office due to the partnership it has with over 30 banks, building societies and credit unions.

According to Post Office, 99.7 per cent of the UK population live within three miles of their nearest branch.

Banks argue that customers are voting with their thumbs. From 2020 to 2024 the share of
Britons using digital channels to reach banking services rose from 33 per cent to 59 per cent, while branch footfall kept falling.

The ONS figures show there is now one branch for every 10,000 people in the UK, compared with 4.9 in France and 2.5 in Spain and Portugal.
https://www.fstech.co.uk/fst/UK_Bank_Branch_Network_Shrinks_As_Lenders_Double_Down

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