In a major blow to Okehampton residents, one of the town's nearest bank branches has announced it will close permanently next month.

Launceston’s NatWest branch will close its doors for the final time on June 16, meaning NatWest customers in Okehampton will need to travel to Exeter to access full banking services, following the closure of the town’s only remaining bank earlier this year.

A banking hub is set to open in Launceston on June 5 for those wishing to access basic banking services.

Dr Chris Ashton, the chief commercial officer at LINK, the UK’s cash machine network, told our sister paper The Cornish and Devon Post: “While more people are choosing to bank and pay for things digitally, we know that many people still rely on cash and face-to-face banking. When it opens, the Launceston banking hub will be a huge boost for the local community and the high street.”

However, this news has caused some consternation in Okehampton as LINK had previously rejected a bid for a banking hub in the town and instead recommended assisted counter service at the Post Office branch. LINK argued that a banking hub was unnecessary as the Post Office was capable of meeting residents’ banking demands. Residents are now questioning LINK’s decision to recommend a banking hub in Launceston, noting that Launceston already has a Post Office that could provide banking services.

Banking hubs are shared physical spaces that allow customers from many major banks to access basic banking services in areas that have lost their traditional bank branches. They are funded by Cash Access UK and operated by the Post Office.

The UK is currently seeing a steady decline in traditional high street bank branches driven by changing customer habits as more and more people choose to use internet and mobile banking services.