Assembly Finance Committee to Undertake an Inquiry on Financial Services in Northern Ireland

The Committee for Finance has launched an inquiry into the local banking and financial services sector in Northern Ireland, focusing on how well the industry meets the needs of both consumers and businesses.

With the ongoing scaling back of the traditional bank branch network, and associated loss of access to cash as well as face-to-face services, but also widespread technological change, Brexit and new market entrants, the Committee believes now is the time to assess the state of the industry here. The inquiry will examine the quality of services currently offered to local communities and businesses.

Although financial services remain a reserved matter, meaning the UK Government will usually legislate in the area, this does not stop devolved Ministers taking action, or the Assembly providing a scrutiny role. The Committee welcomes the fact that the Finance Minister has re-established the Banking Roundtable to engage with the sector here.

Our local banking landscape is distinct, with a market historically dominated by locally operated providers rather than those based in Great Britain. Our region has higher levels of rurality and a greater proportion of small and family-owned businesses. The Committee considers it crucial that local policymakers gather comprehensive evidence specific to Northern Ireland. Where necessary, the Committee will recommend policy interventions to support local communities and strengthen the wider economy.

The first evidence sessions have already taken place, with the Financial Services Union and Cash Access UK providing oral evidence to the Committee on 9^th October 2024. The Committee is expected to take further evidence in the weeks and months ahead, including from representatives of banks, credit unions, UK regulators and local business, with a view to providing a short report before the end of the 2024-25 Assembly session.

Finance Committee chair Matthew O’Toole MLA said: “I am delighted our Committee will be using some of its busy agenda to scrutinise how well banks and other financial services providers are supporting our local communities and businesses.

“We know Northern Ireland has a unique set of circumstances, with an historic all-Ireland banking sector that is shrinking physically, but also a more rural community and more family owned businesses.

“But like everywhere else, we are dealing with the rapid change in financial technology, the impacts of Brexit and other changes.”

Committee Deputy Chair Diane Forsythe MLA said: “We in Northern Ireland are a small part of the UK banking landscape and it is vital that we gather locally specific evidence and, where necessary, provide useful observations and recommendations to regulators and, indeed, local ministers who may wish to take forward their own policy interventions.”

ENDS

Robbie Best

Deputy Communications and Digital Content Officer

Email: Robbie.Best@niassembly.gov.uk