Concern over Scottish bank branch closures voiced by businesses

BANKING: Call for Government and sector to take action

Bank branches are closing at a faster rate in Scotland than in England, Wales and Northern Ireland, according to the Federation of Small Businesses (FSB).

Statistics from the Competition and Market Authority show that between 2013 and 2014, the number of bank branches north of the Border fell by 7.7% to 1,037.

Over the same period, the number of branches in England fell by 5%, 5.7% in Wales and 6.4% in Northern Ireland.

It is estimated there are 8,300 UK bank branches left, with predictions this will drop by half over the next decade.

The FSB is writing to the Scottish Government and banking chiefs north of the Border asking for their views on minimising the impact of this trend.

A new report from the FSB reveals that branch closures are damaging local economies and firms’ access to banking services as well as town centres.

There are also practical problems with travelling further to carry out banking business.

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

Andy Willox, the FSB’s Scottish policy convener, said: “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.

He added: “Because Scotland lags behind England in terms of both mobile and broadband coverage, the impact of the withdrawal of local services is exacerbated.”

More businesses are using online banking, but … these services don’t fill the gap left by boarded-up branches. ANDY WILLOX

The Clydesdale Bank in Newport before its closure. Branches of banks are closing at a faster rate in Scotland than in England, Wales and Northern Ireland.