The ECHO went to Wavertree, one of two areas on Merseyside without a single high street bank, to find out what people think about bank closures
Smithdown Road is one of the most vibrant parts of Liverpool, full of independent shops and quirky cafes. But one thing it doesn’t have these days is a high street bank. Wavertree is one of two Merseyside constituencies, along with St Helens, that is classified as a ‘banking desert’. They are part of a national trend away from in-person banking, towards telephone and online banking.
According to consumer rights champion Which?, more than three in every five bank branches across the UK have closed their doors permanently since 2015. Our high streets are dotted with impressive-looking buildings that used to house high street banks, but have since been converted into shops, bars and restaurants.
READ MORE: New city centre hotel could almost double in size READ MORE: Hundreds of new homes set to transform one part of Merseyside
Which? says that the impact on local communities can be devastating, with some of the most vulnerable members of society, such as those living with disabilities or on lower incomes, reliant on branches and either unable or unwilling to make the switch to banking digitally. Many of the people we spoke to on Thursday morning strongly agree.
Lorna Mograby, 69, thinks the move away from in-person banking is “ludicrous”. She told us: “I don’t use online banking as I don’t tend to trust it. I like to go into banks in person. I like to be able to ask questions. You ask these bots questions over the phone and they don’t understand what you’re saying. You have to repeat yourself over and over.”
We use your sign-up to provide content in ways you’ve consented to and improve our understanding of you. This may include adverts from us and third parties based on our knowledge of you. More info
While she thinks there are “some advantages” to new technology, Lorna has real concerns that the move towards AI and online banking is contributing towards a collective decline in our mental health. She said: “The machines are taking over, but as humans we’re not meant to be interacting with machines. I think all this automation makes people’s mental health worse. With social isolation being what it is, going to the bank and talking to a person might be the only chance some people have to talk to another human being.”
In our conversations with people in Wavertree, social isolation is a subject that comes up time and again. Many people think the pandemic and lockdown have a lot to answer for, not only in terms of reinforcing social isolation, but also by changing our spending habits and accelerating moves towards automation.
We are fast becoming a cashless society, something that Ioannis Karapavolos, 65, thinks we have been “trained” into doing. He told the ECHO: “Since the pandemic we’ve been trained to use cards all the time, that’s the way it goes. I’ve noticed a real difference since Covid. It’s changed things for sure.”
Ioannis is resentful towards the big banks who he says have made “huge profits” over the past few years but are “sacking staff to save money”. Nonetheless, he says, people have to adapt. “You have to move with the times. If you don’t use online banking, life would be difficult. But it is getting extreme. The branches have closed everywhere.”
Ioannis used to own his own business, and he thinks some smaller businesses might struggle with the scarcity of banks these days. He said: “I owned a café. I used to go to the bank everyday for petty cash and change and to deposit money. If banks aren’t there nearby, you might struggle as a business.
“But then, I think a lot people probably use the Post Office now. You can withdraw money there and make deposits. Maybe that’s one of the reasons they’re getting rid of banks.”
Niall Scott, 37, runs the Épicerie Fine café on Smithdown Road. He hasn’t encountered many problems with the advent of online banking, but he is sympathetic to people who mourn the decline of high street banks. Niall said: “As a small business, a lot of our banking is done online now, but I can sympathise with people who need face-to-face problem solving, or physical things like getting change. And it seems a shame that the banks are closing, especially the old buildings.”
Joan, 79, says she uses cash “all the time – only cash”. She used to go to the Santander bank on Penny Lane until it closed and was converted into a pub. Now, she uses the Post Office for most things, including paying her council tax, receiving her pension, and withdrawing money.
Like many people we spoke to in Wavertree, Joan is put off online banking by the threat of scams. She said: “I don’t do online banking, or telephone banking. I’m a technophobe. There are that many scary stories, I’m terrified really. Not that I’ve got anything to rob! I don’t like anything automatic. I like to speak to people, I’m a people person.”
Sue Kolvik, 73, is similarly concerned about cyber scams, which she says are “scary”. Despite her concerns, she does do some online banking now, purely because of the inconvenience of going to the bank in person. She is a TSB customer and has to jump on the bus to go into town in order to go to a branch.
According to Sue, there used to be a branch of TSB on Penny Lane, but it closed, forcing her to go further afield. “I only really go when I have to, I suppose,” she says. “If I’ve got a specific query, it’s better to speak to someone in person. Or if I’ve done something stupid like locking myself out of online banking I have to go there in person and try to sort it out!”
Sue said she is using her card “a lot more now” than she used to. She said: “I always have a bit of cash with me, but I do use the card more than I use cash.”
Unlike Sue, Paul Edwards, 75, is a full-on card refusenik. For him, cash will always be king. Paul is very unhappy about the lack of banks in the area, and fed up with the move towards automation.
Pulling out his old-school ‘brick’ mobile phone, he told us: “I don’t do the internet. I will never go this modern way. No online banking. I’m stuck in the 60s, and I like being there. This thing [the phone] doesn’t have internet and it does the job. You see them on the bus with their phones, and they’re like zombies these days. It really irritates me.
“I always use cash. I’ve got no credit cards – I don’t believe in them. I have to go into town for my banking. There’s a hole in the wall, but I don’t like using them. They’re a mugger’s paradise. If there’s a problem, I have to go into town.
“Who’d have dreamt, years ago, that all the branches would’ve closed? You’d never have thought it. You’re basically tied to one branch, which is the only one in Liverpool as far as I know.”
New rules overseen by the Financial Conduct Authority (FCA) regulator came into effect last week. This means banks will need to give more consideration to a local community’s cash needs before deciding to close a branch. The watchdog will require firms to check whether additional services would be needed should a branch shut its doors or an ATM be switched off – and keep facilities open until the additional cash services are available.
New FCA rules also give residents more say over what their community’s cash needs are. People can request an assessment of whether there are gaps in local cash access and where significant gaps are found, providers will have to deliver reasonable additional cash services.
