Now RBS boss blames own customers for axed branches
He cites their ‘changing behaviour’
RBS boss Ross McEwan was branded ‘arrogant’ yesterday as he dismissed claims customers felt ‘betrayed’ by the bank’s decision to close a third of branches in Scotland.
During a grilling by MPs on Westminster’s Scottish affairs committee, the bank’s chief executive said he understood the ‘disappointment’ at closures but defended the decision – and said it was the result of changing customer behaviour.
MPs reacted with anger to Mr McEwan’s refusal to accept the harsh realities facing many customers, as he claimed the bank’s app was the ‘most loved’ channel for customers.
Scottish Conservative MP John Lamont said: ‘They still do not understand the implications for communities and
‘Reasons for closures are pathetic’
have been arrogant in dismissing the concerns of my constituents.’
Asked what he would say in response to the ‘disappointment, frustration and anger’ of those who would lose out on their local bank, Mr McEwan said that ‘change is absolutely difficult,’ adding: ‘I do recognise that customers are very disappointed that their local branch is closing.’
But he claimed RBS was simply responding to changing customer behaviour. He said: ‘We’ve not taken any of these closure decisions lightly. Let’s be clear, when we look at our customer behaviour, the evidence is stark.
‘Branch use has fallen dramatically. The great majority of our customers want to bank when it suits them and at all hours.
‘They aren’t using a branch as their first point of call now at all. We have to respond to changing trends.’ Mr McEwan was being quizzed alongside RBS chief executive of personal and business banking Les Matheson and managing director of personal banking Jane Howard.
The banking bosses were giving evidence defending the decision to close 52 branches in Scotland, with a further ten under threat from closure – a move that will leave many communities across the country without a single bank in their nearest town.
An independent inquiry will determine whether the ten branches should remain open or close, and Mr McEwan claimed he would take on board whatever decision is made.
Before giving evidence yesterday, the Unite union claimed Mr McEwan and his staff had not been completely honest about the impact on the workforce and said 80 per cent faced being axed when the closures took effect.
Although plans to cut services at the majority taxpayerowned bank have been widely condemned, Mr McEwan insisted they would go ahead, leading to accusations that he was dismissing the fears of customers.
And he insisted that he was ‘comfortable with the size of our branch network in Scotland’ despite a third of branches being prepared for closure.
Mr Lamont hit out at the suggestion customers were behind the move. He said: ‘The reasons for the closures by RBS today have been pathetic.’
Nationalist MP Deidre Brock accused the bank of caring more about profits than elderly and vulnerable customers.