Preston City Council has joined forces with Wirral and Liverpool councils to create a new community bank which will serve residents and small businesses.
The mutual society, North West Mutual, has been approved by the FCA which paves the way for main branches and satellite branches to open across the region.
The aim is to help the most vulnerable people and small businesses in Preston struggling to access the banking services they need that aren't available to them via the usual high street route.
Councillor Matthew Brown, leader at Preston City Council, said: "A central part of the Preston Model is establishing a regional cooperative bank, owned by its customers.
"The closure of many high street bank branches over the last few years has had a substantial effect on small businesses in Preston. Residents may have also struggled to open bank accounts due to complex personal circumstances, and this initiative will be there for those families too.
“North West Mutual will be a community bank with the social mission of serving the everyday financial needs of ordinary people, community groups and small and medium sized companies across Preston.”
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