Deposit a theory: Local councillor floats the idea of a Bank of Hackney

Hackney’s deputy mayor said the concept of a community bank is ‘very compelling’

You may have heard of fashion brand House of Hackney – now one local politician wants people to imagine a Bank of Hackney.

Cllr Gilbert Smyth has floated the idea of a community bank in the borough, and said he has been thinking about it for a while.

The challenges of setting up an independent local bank featured on the silver screen in the 2023 comedy The Bank of Dave.

The film is based on the real story of charismatic Burnley businessman Dave Fishwick, who set up his own savings and loans company in the Lancashire town in 2011.

Cllr Smyth said a mutual bank could recirculate savings into loans for the community, and that he has been mulling over the concept since banks began closing more and more high street branches.

According to consumer group Which?, more than 4,680 banks closed between 2015 and 2022. A further 67 closures have been announced by high street banks this year.

Bank bosses have been defending their decisions in front of the parliamentary treasury committee and said business has migrated online.

HSBC left Mare Street in Hackney in 2021.

Cllr Smyth raised the issue at the skills, economy and growth scrutiny commission this week as Deputy Mayor Guy Nicholson, who has responsibility for delivery, inclusive economy and regeneration, was facing questions.

Cllr Nicholson ruled out the council playing banker and said Hackney’s credit union would be more appropriate.

He added: “I’m not sure the council is best placed to become a banker for our community.”

He said the concept was “very compelling indeed” and wondered about the challenges of finding someone able to provide capital for a bank of Hackney.

However, he said he would be interested in “brokering conversations” and exploring the merits of the idea with the credit union and other groups.

Stephen Haynes, the council’s strategic director for an inclusive economy, corporate policy and new homes, said: “There are huge advantages in theory from a community bank.”

But he pointed out a couple of potential pitfalls in limited service, locations of branches, and technology.

Cllr Smyth said the idea has been tried elsewhere in the UK and he was interested in a “broader conversation” about it.

“Organisations like ourselves have to get behind them,” he said.