A banking hub is a shared bank branch, where people can withdraw and deposit cash, check your bank balance, pay utility bills and businesses can access change-giving services.
The news comes as Santander confirms it will shut its Dunstable branch. However it will remain open until the hub is in place - expected to take around three months.
Once open, the hub will be staffed by Post Office workers. Private spaces will also be available for customers to meet a representative from their own bank on a rotating schedule.
The number of bank branches in the UK has fallen by around two thirds since the 1990s as more people have moved to telephone and then online banking. In response the Labour Government has pledged to roll out 350 banking hubs in towns across Britain.
Local MP Alex Mayer said:“While the loss of bank branches doesn’t have much impact on those who have been able to move to online banking, there are people who need the opportunity to speak to someone. That is especially the case if you use cash. And plenty of people and businesses do. So I am pleased that through this new banking hub, whoever you bank with, locals will be able to access cash and face-to-face banking services in Dunstable.”
About a quarter of Brits still use cash at least once a week and about 10 per cent, or 5 million people, use it daily,