Shock as axe swings on RBS branches.

Bank claims customers are increasingly choosing to use online banking

The Royal Bank of Scotland (RBS) has announced plans to close 62 branches north of the border with the loss of 158 jobs.

The Scottish Government said the news would leave large parts of the country with limited branch coverage.

An RBS spokesman said: “More and more of our customers are choosing to do their everyday banking online or on mobile.

“Since 2014 the number of customers using our branches across the UK has fallen by 40% and mobile transactions have increased by 73%.”

He continued: “As customers continue to change the way they bank with us, we must change the way we serve them, so we are investing in our more popular branches and shaping our network, replacing traditional bricksand-mortar branches with alternative ways to bank, including community bankers, mobile banks on wheels and post offices, so that we can reach even more customers.”

Business minister Paul Wheelhouse said: “The worst impact will be on the most vulnerable members of our society, for many of whom going into a branch is the only feasible way to conduct their banking.

“While recognising that footfall in branches is falling due to online banking, RBS and other banks must take into account the needs of all customers – not just those who can access and use digital services.

“Along with my colleagues, I will be engaging with RBS to ensure that everything possible is being done to mitigate the impact of this decision on communities affected.”

Unite Scotland’s deputy regional secretary Mary Alexander said: “The Scottish Government cannot stand by and watch this catastrophe develop.

“Every bit of financial muscle that the Government has must be deployed to force RBS to change their mind.

“There must urgent talks with RBS to make it clear their proposals are totally unacceptable in modern Scotland.”

Scottish Secretary David Mundell said: “I am very disappointed to hear of the plans by the Royal Bank of Scotland to close so many of their branches across Scotland.”

He added: “I’ll be seeking a meeting with the senior leadership of RBS to discuss these closures as a matter of urgency.”

Andy Willox, Scottish policy convener of the Federation of Small Businesses (FSB), said: “This is bitterly disappointing news, particularly for those bank workers whose jobs are under threat, but also for the Scottish towns, cities and villages affected.

“Ultimately, these changes will make it more difficult to run a business in much of Scotland – including many deprived communities and tourism hotspots.”

He added: “It is time for the big banks to come clean regarding their long-term plans.

“If they’re going to wind down their branch network, they need to develop proper alternatives to service all of their customers’ needs.

“So far promises made regarding smart ATMs and mobile banking have not been delivered.” News of plans to close so many RBS branches is bitterly disappointing – particularly for those bank workers whose jobs are under threat.

It is also a hammer blow for Scottish towns, cities and villages affected.

Ultimately, these changes will make it more difficult to run a business in much of Scotland – including many deprived communities and tourism hotspots.

RBS must be encouraged to reconsider these plans, and that is why The Courier’s campaign (see opposite page) is so important.

Branch banking remains vital for many FSB members.

While many small businesses use online banking, that doesn’t mean they don’t handle cash.

As such, easy access to a branch is vital.

Further, small firms still hugely value the personal support they receive at branches, particularly when it comes to completing complex transactions and making big financial decisions.

Many of the branches under threat are in parts of the country with particularly poor mobile and broadband coverage – a fact to which RBS seems to be paying scant regard.

In addition, empty branches make an ugly addition to high streets.

It is time for the big banks to come clean regarding their long-term plans.

If they’re going to wind down their branch network, they need to develop proper alternatives to service all of their customers’ needs.

I would encourage everyone to get behind The Courier’s campaign in a bid to save local banks across the country.