Frome community plans ‘finance hub’ as banks shut branches

A community is exploring setting up a finance hub after losing a number of its banks.

The Natwest and HSBC branches in Frome, Somerset, closed this year, and Barclays has announced it is leaving.

Residents have now set up “Proper Frome”, and plan to open a post office with space for professionals offering financial services.

Dr Jean Boulton, of Prosper Frome, said the community had lots of “pockets of financial expertise”.

Speaking to BBC West, Dr Boulton explained that although Frome has lost a number of banks, it is still not eligible for an official banking hub because it still has a certain number of banks and ATM machines.

Banking hubs are being set up across the country in towns with few or no financial facilities.

Proper Frome hopes that by setting up a Post Office the financial hub should be able to provide similar services.

Branches of the Post Office are often paid by banks to accept deposits and provide withdrawals on their behalf.

This is particularly important for people and businesses that still deal in cash, Dr Boulton said.

Prosper Frome hopes to finance the scheme by renting out hot desk space to professionals such as accountants, solicitors and financial advisers.

It also hopes credit unions and organisations such as the Citizens’ Advice Bureau will have a presence.

Currently there is no timescale for when the hub might open, but it could take as little as 12 months to set up.

Prosper Frome needs to secure a premises as well as apply for authorisation to open a post office.

Dr Boulton, a former town councillor whose remit was economic development, said: “We have done many things that are quite innovative [in Frome].

“It is a close-knit, integrated community, where people know each other and people know who to go to for advice and support.”

She continued: “In the bigger businesses, there are people with lots of pockets of financial expertise, so we are hopeful we can do something with this.”

The leader of Frome Town Council, Lisa Merryweather-Millard, said the banking exodus has been a blow to the area.

“There are people who don’t use online banking, who use the banks to manage their bills, for financial literacy, and we have a lot of businesses who still deal in cash,” she said.

“We have a thriving live music scene, most of which deals in cash, so there is no where for them to take their money at the end of the business day.

“We are not the only town in this situation, it is happening across the country, but empty shops, empty buildings, they have an effect as well.”