Banks say licensing issues make a resident’s idea for a ‘multi-bank’ to secure a point of contact for customers are unworkable.

Tim Farndon proposed the collaboration after NatWest was the latest bank to announce that its Sidmouth branch was set to close.

He said the likes of Lloyds and Santander could share operating costs and use technology and specific tellers to handle different enquiries.

A NatWest spokesman told the Herald the idea is ‘unfeasible’ as it would be ‘too complicated’ to secure the licences under one roof.

The bank’s Sidmouth branch is set to close on June 27 after it revealed only 67 customers visit it each week.

A Lloyds spokesman said the bank continues to support customers in Sidmouth, but the Post Office has also increased access to banking services for personal and business customers, who can use it to make cash withdrawals, deposits and balance enquiries.