Fears over rate of bank branch closures

BANK branches are closing at a faster rate in Scotland than in the rest of the UK, according to a report.

The Federation of Small Businesses (FSB) said the closures are problematic for its members.

Statistics from the Competition and Markets Authority show that between 2013 and 2014, the number of bank branches north of the border fell by 7.7 per cent – from 1,123 to 1,037.

Over the same period, the number of branches in England fell by five per cent, 5.7 per cent in Wales and 6.4 per cent in Northern Ireland.

The FSB is writing to the Scottish Government and banking chiefs in Scotland asking for their views on how to minimise the impact of closures.

It has published a report stating that branch closures are damaging local economies and making it harder for firms to access services.

It spoke to businesses in a series of UK-wide focus groups where practical problems associated with travelling further to get change and to deposit cash or cheques were raised.

Firms also cite their preference for face-to-face interaction when seeking business advice about growth and finance.

Andy Willox, FSB’s Scottish policy convener, said: “Banks are disappearing from Scottish high streets.

“We recognise that more businesses are using online banking. But, as our report highlights, these services don’t fill the gap left by boarded-up branches.”