A SOMERSET town has qualified for a bankinghub-style 'deposit service' after news that its last remaining bank would close later this year.

TSB recently announced it will close its Frome branch due to low footfall, marking the fourth bank closure in the space of a year in the town, and leaving it with no banks left.

A community-led group, Prosper Frome, was set up last year to explore the creation of a financial hub.

Prosper Frome applied to LINK, the organisation with responsibility for reviewing the impact on communities of changes to banking provision, but was told that the town didn’t qualify for an official hub, because it had adequate ATM provision and some remaining banks.

Following the announcement by TSB, LINK revealed Frome is now eligible for a new 'deposit service'.

In an email to Sarah Dyke MP, the organisation wrote: “LINK assesses every bank branch closure in the country and can recommend shared banking services if certain criteria are met.

"I’m writing to let you know that we have visited Frome and it has met the criteria for a new deposit service.

"The service will be operated by Cash Access UK, a not-for-profit company owned and funded by nine major high street banking providers.

"LINK say that, once established, it’ll ensure that local businesses and consumers are able to deposit cash in a way that is convenient for them."

Read more: Frome will have no remaining banks as TSB closure announced

Speaking on the news, Ms Dyke said: “I’m extremely disappointed by news of yet another bank closure in Frome.

"Many vulnerable and elderly residents rely on in-person banking services and the town’s businesses and charities need to be able to deposit cash takings.

“I’ll be meeting with LINK, Frome Town Council and Prosper Frome as soon as possible to discuss banking provision, including plans for a new deposit service.

"I’m committed to doing everything I can to ensure that the residents and businesses of Frome are able to access the financial services they need.”

Anna Sabine, Liberal Democrat candidate for Frome and East Somerset, added: “This is an incredibly short-sighted decision by TSB and potentially worrying news for businesses in Frome, many of whom still rely on local banks.

“I know from my conversations with local residents how worried they are about the future of our high streets. It is clear that the Conservatives have no plan to support our high streets to thrive.”