The UK’s largest High Street banks have joined forces to launch a new non-profit company designed to preserve access to cash.

Barclays, Danske Bank, HSBC, Lloyds Banking Group, Nationwide, NatWest, Santander, Virgin Money, and TSB have incorporated the new business, which aims to encourage the development of shared banking hubs as branch closures continue to rise.

In November, Which? called for the the launch of banking hubs and free access to cash in response to widespread bank branch closures across the UK.

The consumer organisation said that as 2022 draws to a close, around 660 branches will have closed by the end of the year. A further 60 are expected to close next year.

UK Finance said that the move marks a major milestone in delivering the industry's commitment to make sure customers still have access to cash on the High Street - with 29 hubs being announced so far.

According to the trade association, the move follows extensive industry collaboration over eighteen months, led by UK Finance to align with forthcoming legislation and regulation by the Financial Conduct Authority.

“While many people are now opting to manage their money digitally, we want to ensure that people can continue to access cash and do their banking face to face too,” said David Postings, chief executive of UK Finance. “The creation of Cash Access UK Ltd is an important step towards a network of banking hubs across the country."

Earlier this month, the Bank of England outlined how it will use “new powers” to preserve wholesale cash distribution.

The central bank said that cash plays an important contingency role if other forms of payment are unavailable or interrupted, while also remaining vital for many people in society.

It warned that the declining use of cash is putting pressure on the wholesale distribution system, which directly underpins access to cash for the retail market.

New research from Accenture found that cash is still a popular payment method in the UK, despite a shift towards card transactions.

The survey found that almost two-thirds of Brits use cash for payments at least five times a month, second only to debit cards, which are used over five times a month by three quarters of those surveyed.

Cash withdrawals at the Post Office totalled £777 million in October, up 12 per cent year on year – despite a one per cent dip compared to £785 million in the previous month.

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