CONCERNS are growing over the impact of the continuing closure of banks in rural areas and a fall in the number of free-to-use cash machines.

A report by the National Assembly economy committee said 239 branches closed between January 2015 and August 2019.

Both Newcastle Emlyn and Llandysul are now without banks, while NatWest has pulled out of Cardigan.

The report warned "money is being drained from smaller communities and high streets to the bigger towns" and said ministers needed to act.

Although banking regulation is a matter reserved for Westminster, AMs said the Welsh Government could "intervene and make a difference".

The report also said "digital exclusion" - areas where internet connectivity is poor - made it difficult for people to bank online and pointed out 51% of people over 75 were not internet users.

The report said current alternatives "cannot fill the gap” and called on Welsh ministers to change planning rules to protect banks and take into account the impact of branch closures when planning community regeneration schemes.

And research by consumer champion Which? says the number of free-to-use cash machines fell by 10 per cent in the 12 months to March 2019.

The report found the most deprived areas are being hit the hardest by the loss of free-to-use cash machines. This follows a warning from network operator NoteMachine that as many as 3.000 of their free-to-use cash machines could switch to charging fees.

The cash machine outside the Premier store in Newcastle Emlyn – which is operated by NoteMachine - now charges a fee to withdraw money.

Gareth Shaw, Head of Money at Which?, said: "Wales has lost a huge number of bank branches, with over two-fifths of the network having closed in less than five years - leaving people across the country struggling to access vital financial services and cash.

"This important inquiry has put the problems faced by people hit by the double blow of widespread cashpoint and bank branch closures at the top of the agenda and the committee is right to call for urgent action.

"We believe the UK government should intervene by introducing legislation that ensures consumers can continue to access and pay with cash for as long as it is needed.”

The Post Office recently announced a new Banking Framework agreement with 28 UK banks that ensures that the banks’ customers can continue to have free access to a range of cash and cheque banking services across the 930 Post Office branches in Wales.

However, Carmarthen East and Dinefwr MP Jonathan Edwards has written to Barclays to request the bank reconsiders its decision to stop their customers from making cash withdrawals in Post Office branches from January 8, 2020.

While some services for Barclays customers will be unaffected after this date – such as cash and cheque deposits, and balance enquiries – the decision to remove cash withdrawal services from Post Office branches after this date has led to many complaints from customers.

Mr Edwards said: “Barclays are the only bank taking this position.

“Everyday banking services provided by the Post Office for customers of major banks are a lifeline for many of my constituents who have suffered from these same banks closing a number of their branches over the past few years.

“The elderly and more vulnerable customers are particularly affected. They cannot be expected to travel the tens of miles to the nearest branch of Barclays to make a simple cash withdrawal.

“I have been contacted by a number of constituents expressing their concern and I have written to Barclays to urge them to reconsider their position.”

Commenting on the Which? analysis, he added: “This is a shocking report revealing the full extent of both the reduction of free-to-use cash machines and the loss of local banks within Wales. This is a double hit on the ability of people to access cash within our small towns and rural communities.

“I have proposed a radical shake up of the banking model and Plaid Cymru has been consistent in putting forward a number of solutions to address this crisis.

“Both the British and the Welsh Government know they have a duty to ensure everyone has access to banking services. Adam Price (Plaid Cymru leader) and I will not allow this contempt for our constituents to continue and we are campaigning for the creation of a Welsh Public Bank model to meet the needs of our small towns and rural communities.”

Ceredigion MP Ben Lake is to seek a meeting with Barclays and said: "Post Offices provide a vital public service to local communities across Ceredigion, in particular by providing access to some banking services.

“I am delighted that banks have signed this new agreement, enabling the Post Office to continue serving communities in this way, as well as ensuring postmasters’ pay is fair and reflective of the essential service they provide.

"It is, however, sorely disappointing to hear that Barclays has decided to discontinue cash withdrawals from the Post Office.

“The customers who rely on this service are often in rural and isolated communities, and as such I am very concerned about the impact this will have. I shall be seeking a meeting with Barclays in the near future to raise these concerns, and to encourage them to pursue the proposal of sharing premises with other banks and businesses.”