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Business

MP backs shared banking

By: KentOnline reporter multimediadesk@thekmgroup.co.uk

Published: 13:07, 12 August 2002

A RURAL banking scheme that allows customers to use any bank's nearest branch has won the backing of Hugh Robertson, MP for Faversham and Mid Kent.

He saw experimental shared banking in operation when he paid a visit to the NatWest branch in The Square, Lenham. The branch is one of a handful in the UK piloting a project set up by the British Bankers' Association (BBA).

It aims to tackle the legacy of the big banks' branch closure programme, a controversial strategy that left many customers in small communities without a local branch.

Mr Robertson said: "It's exactly the innovative scheme that we all ought to be seeking to encourage in order to keep services open in rural areas."

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Customer Angela Stainton-James has accounts with both NatWest and HSBC. "If I want to use an HSBC branch, I have to go to Maidstone and it's very difficult to park," she said. "Being able to use the Lenham branch is much more convenient."

About a fifth of business at the Lenham branch now comes from non-NatWest customers, according to Steve Blackburn, manager of NatWest branches in Lenham and Bearsted. He said there were no extra transaction charges for non-NatWest customers and banks shared the costs of the scheme.

"We're halfway there and the results have been pretty good," said the BBA's Simon Pitkeathley. "So far, so good."

Andy Key, NatWest regional retail manager, urged more people to take advantage of the scheme before it ends on December 31. "The feedback is very good and we believe it's going very well," he said. "The people of Lenham can see it's benefiting the village."

After a review by the University of Bristol early next year, bank chiefs will decide whether to extend the scheme.

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