Labour has pledged to open 350 new banking hubs in towns and villages across Britain over the next five years if it wins the general election on 4 July.
The party said its plan was part of efforts “to breathe new life into Britain’s high streets”, including cracking down on anti-social behaviour and stamping out late payments to small businesses.
There are currently 57 banking hubs across the country, which let customers of multiple banks access in-person services and deposit and withdraw cash.
Cash Access UK, a non-profit owned and funded by nine major banks, plans to reach 100 hubs by the end of the year.
Locations for hubs are recommended by ATM network Link, which reviews criteria like the numbers of shops in a community, transport links and deprivation.
The Conservative government has granted beefed-up powers to the Financial Conduct Authority (FCA) in the Financial Services and Markets Act to ensure people can continue to access physical money.
However, Labour is proposing to update the qualifying criteria for the creation of hubs and explore how the locations can support financial inclusion through digital training and debt advice.
The party said that it would give the FCA and Link new powers to proactively identify communities that need a hub, with areas that currently do not have any bank branches “first in the queue”.
Banking hubs have become more prevalent on the high street as lenders increasingly close branches in the shift to online services. UK banks have closed more than 6,000 branches since 2015, according to consumer group Which?
Shadow chancellor Rachel Reeves said on Monday that many high streets “have been reduced to ghost towns”, adding: “Labour’s plan for growth means bringing banking back to high streets, with hundreds of new banking hubs that can support local communities and their businesses.”
City minister Bim Afolami commented: “The Conservatives have a clear plan to protect access to cash. We have taken the bold action to ensure we are on track to deliver 225 more banking hubs, ensuring peace of mind and financial security for people.”
Asked if it supported Labour’s plan, a spokesperson for banking trade body UK Finance said: “FCA research has found the vast majority of people have free access to cash locally, and we will continue to work with the regulator and government to ensure this level of service is maintained.”