Newcastle Building Society pilots scheme that opens branches to customers of rivals

Chief executive Andrew Haigh says the move is in response to decisions made by other banks that are not in the interests of vulnerable people

Newcastle Building Society is launching a branch pilot in Gosforth and Knaresborough that will allow customers of any bank to access services. (Image: Photo by Alex Ingram)

Newcastle Building Society will run a pilot scheme designed to tackle a lack of bank branches in some communities.

The mutual will launch special terminals at its Gosforth High Street branch and new Knaresborough branch at which customers of any bank can access services, in a move it says is the first of its kind in the ��Ƶ.

Services will be provided by OneBanks Hub and will serve personal and business customers of all major banks - allowing them to withdraw cash, deposit coins and notes, move funds and pay bills.

The pilot is in response to what Newcastle Building Society calls "bankless communities" and follows the closure of another high street bank in Gosforth earlier this year, and the closure of Knaresborough's last bank in 2021.

It points to analysis from which.co.uk that shows 4,000 ��Ƶ bank and building society branches close since the start of 2015, and a further 220 are due to close this year.

Newcastle Building Society chief executive officer, Andrew Haigh said: “We champion the high street, and believe in its vital role in supporting vibrant local economies.

"Decisions made by banks have been at the expense of many vulnerable people who are reliant on cash and, as a result, risk being disenfranchised from the financial system. We are proud to be the first to bring this unique proposition into mainstream financial services.

“It will provide customers with a supported digital banking facility, convenient access to cash withdrawal and deposits for people whose bank branch is no longer either local, or convenient.

“We have a growing business and an ongoing multi million-pound investment and innovation programme in upgrading and expanding our branch network to offer superb, modern environments for our growing customer base across the North East, Cumbria and North Yorkshire.

“This innovative pilot, a one stop solution if your local bank has closed, is potentially transformational for our region, extending access to face-to-face services whilst increasing digital adoption and inclusion. The unique combination of our innovative approach to community branches and OneBanks’ technology proves that with the right commitment, there can be a bright new future for financial services on our high streets.”

Newcastle Building Society's branch staff will help customers that need assistance using the OneBanks Hub, which sits alongside the branches' other functions including savings, mortgages and financial advice on pensions, investments, and protection via its Newcastle Financial Advisers subsidiary.

Mark McCallum, Country Head ��Ƶ & Ireland at Glory, which will provide the technology behind the terminals, said, “As a cornerstone investor in OneBanks Hub, we are delighted that Newcastle Building Society is the first financial institution to combine the convenience of Glory’s cash automation solutions with the power of the OneBanks software to address the challenge of on-going access to cash for communities affected by branch closures.

"The new economics of branch banking, driven by changes in consumer behaviour, are presenting challenges to the traditional provision of in-person banking services which can be solved for consumers by the shared infrastructure approach being adopted by Newcastle Building Society."

Duncan Cockburn, chief executive of OneBanks Hub, added: “We developed OneBanks Hub to support communities without access to everyday banking, and this partnership with Newcastle Building Society and Glory shows how this can be delivered in a flexible, user-friendly way. This initiative will help individuals and small businesses continue to do their critical financial transactions without having to travel miles to their nearest bank branch. It is a model that can be replicated in many more locations.”