Communities Without Credit: The Political Implications of Deprivation in Access to Banking Services

A growing body of research links public service provision to political geographies. Yet an increasing share of services in Western countries is delivered by private companies. This article argues that the political implications of service deprivation extend beyond state-provided services for two reasons: first, because private services support communities through socioeconomic channels, and second, because citizens can hold governments accountable for maintaining access to essential services, regardless of whether they are publicly or privately delivered. To test these arguments, I examine bank branch closures in Spain, which have harmed local economies, reduced financial access for individuals and firms, and generated grievances in affected communities. Difference-in-differences models, survey data, and qualitative protest event analyses show that branch closures fueled protest voting, increased distrust, and heightened economic pessimism among locals. The findings highlight how service privatization can reshape electoral behavior and contribute to political polarization, with implications for regulation and democratic accountability.