Warwick's new banking hub may not be located in Shire Hall after all – and a councillor fears it could impact the town's Post Office.

With Lloyds set to permanently close its branch on Swan Street in June, following Natwest, HSBC, TSB and Barclays in leaving the town in recent years, Warwick is among the latest locations being considered for a one-stop shop for all major banks. 

A pilot has recently been rolled out in Kenilworth Library where Post Office staff manage the cash transactions while staff from various banks have availability for appointments and drop-ins on a rotating basis. 

Talk of putting such provision in at Warwickshire County Council's Shire Hall headquarters, which hosts Warwick's Post Office, was welcomed last year but Cllr John Holland revealed during a meeting of full council this week that "the banking hub people tell me it is not going to be here but in another building in the town centre".

He reasoned that could lead to two Post Office locations in the town "which I fear would prove unviable", adding: "We could end up with none.

"What is the actual position? Can the past answers of 'yes, we are on course to achieve that' be honoured, even at this stage?"

Deputy leader Cllr Peter Butlin, the county council's political lead on finance and property, said plans for Warwick were always going to be subject to how things go at Kenilworth where the hub is being trialled for six months "while a permanent location is found".

He added: "A meeting is being held with the Cash Access team in Shire Hall to understand how the banking hub could work within the Shire Hall site and discuss all options, including other sites in the town centre with the Cash Access team. 

"Hopefully we are progressing and can work with partners to provide banking facilities."