A "NEW model for high street banking" to boost access to cash is being rolled out to communities hit by bank closures around the UK - after being trialled in Scotland.

The new hope for high-street banking, funded by the banking industry came in the form of brand new five-banks-in-one hub hosted by the Post Office had been tested in pilot locations in Cambuslang and Rochford in Essex.

The two hubs have already had approaching 60,000 customer visits and transactions worth £16 million have taken place since they opened last year Scotland is now to benefit as a wave of 13 hubs are brought in - bringing the total to 25, according to ATM network Link and the Cash Action Group, which includes banking industry representatives and others.

The schemes fronted by Community Access to Cash Pilots Board chairman Natalie Ceeney offered access to basic banking and cash withdrawals and deposits through a counter operated by the Post Office, which is meant to support the customers of all major retail banks.

The 13 new hubs will be in locations including Brechin in Angus, Forres in Moray, Carluke in Lanarkshire and Kirkcudbright in Dumfries and Galloway as well as Axminster in Devon, Barton-upon-Humber in Lincolnshire, Lutterworth in Leicestershire, Royal Wootton Bassett in Wiltshire, Cheadle in Staffordshire, Belper in Derbyshire, Maryport in Cumbria and Hornsea in Yorkshire.

Banks and building societies have asked Link to identify communities that need help and the locations have been selected as part of that work.

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.

John Bachtler, chair of the Cambuslang Community Council, said: “The banking hub is the centre of our community and it’s bringing life back to the high street and crucially helping people and businesses with their everyday banking needs.

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“It gets busier and busier every week and we know it will make a significant difference in other communities across the UK.”

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.

The Lanarkshire town of 25,000 people, found itself at the forefront of the fight for better access to cash four 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.

Natalie Ceeney, chairman of the Cash Action Group, said: “Cash still matters hugely to millions of people across the UK and with the cost-of-living crisis biting, more and more people are turning to cash as a way of budgeting effectively.”

She continued: “This is only the start. The hub network will expand significantly to meet the demand of communities across the UK. I would expect us to be supporting hundreds of communities within a few years.”

Access to money concerns continue to surface as it emerged cash machine use in Scotland slumped by nearly half in two years and is not returning to pre-pandemic levels.

New data showed that there were 93m withdrawals in 2021 while there were 175.7m in 2019, before Covid hit the nation.

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The typical Scot was withdrawing £1,578 per year in 2021 compared to £2553 before the pandemic - a nearly 40% decline.

The UK Government has said it will legislate to protect the future of cash, although it has not yet done so and various industry efforts to maintain access are gathering pace, such as being able to request cashback without making a purchase in shops.

Analysis revealed that nearly half (47%) of the over 1000 bank branches which were open in Scotland seven years ago will have shut by the end of 2021.

The consumer organsiation Which said that the long-promised legislation had now to be forthcoming.

Jenny Ross, Which money editor said: "The country's cash infrastructure has been cut to the bone in recent years due to ATMs and bank branches closing, leaving millions of consumers who rely on cash and face-to-face banking services at risk of being cut adrift.

"It's encouraging to see the banking industry announce more banking hubs which, alongside other bank alternatives such as enhanced Post Offices, could play a role in ensuring local community's cash needs are met. These hubs, as well as ones announced in December, must open as soon as possible so consumers can benefit."

She added: " The Financial Conduct Authority must be given the appropriate powers to oversee the framework of the country's cash system, including determining a local community's access to cash needs based on geographic distances, as well as holding banks to account. Given the rate of bank branch and ATM closures in recent years, that cannot happen quickly enough."

Link’s figures show there were 52,547 ATMs in December 2021, of which 40,856 were free to use.

In December 2019, before UK lockdown restrictions, there were 59,610 ATMs, of which 44,870 were free to use.

John Howells, chief executive of Link, said: “The UK isn’t ready to go cashless yet and it’s vital to protect our national cash infrastructure for the millions of consumers who still rely on cash. The intended legislation is a very positive step that will ensure access to cash for UK consumers for years to come.

“Any community with a problem with access to cash can now contact LINK and ask for help.

“We will also proactively check every community where ATMs and branches are closing to see if help should be provided. Where a community lacks the access that it needs, Link will commission services such as free ATMs and shared banking hubs from the new company being set up by the banks.

“The Financial Conduct Authority is working with Link to oversee the whole approach and make sure that communities get the help that they need.”