Harpenden's banking crisis could be resolved by the creation of a new community hub aimed at replacing these vital services.

Santander, NatWest, Lloyds and Halifax have left the town over the past year, and both Barclays and HSBC have reduced their opening hours.

Now the town council has started work exploring the opening of a community banking hub to help address the impact that the loss of banks has in the town.

Banking hubs are part of a national scheme with a number of locations having already established a pilot or permanent hub.

Community banking hubs offer a dedicated and appropriate banking space, open to customers of all retail banks, providing a place where the public and businesses have daily access to face-to-face counter service, with the same transactional banking facilities that the high street banks offer.

They are situated in the centre of town and aim to be accessible to all members of the public. It is hoped that Harpenden may have the opportunity to be included in the scheme later this year.

Whilst the town council is aiming to facilitate the opening of a community banking hub, they are organised and funded by large clearing banks and would not be funded locally using public funds.

Harpenden Town Mayor Cllr Lisa Scriven said: “To help understand the need for a banking hub, the town council is gathering data from residents and local businesses on the impact of the declining number of banks via community engagement.

"We hope to gain the opinions of a wide audience including people who are financially vulnerable and those who may find banking technology more challenging."

Local banking campaigner Derek French welcomed the news: "With four of Harpenden's six banks already gone and the remaining two under threat, this is a very welcome initiative by the town council and I urge residents and businesses in Harpenden, Redbourn and Wheathampstead to respond to the survey which will be crucial in getting a bank hub in the town as soon as we can."

Anyone who wishes to give their opinion should visit the Harpenden Town Council website: harpenden.gov.uk/initiatives/banking-hub