The Press and Journal (Inverness, Highlands, and Islands)
Increase in bank closures felt most rurally
Move to net leaves villages isolated
Bank branches are closing at a faster rate in Scotland than in England, Walesand Northern Ireland, figures unearthed by the Federation of Small Businesses (FSB) show.
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% – from 1,123 to 1,037. Over the sameperiod, thenumberof branches in England fell by 5%, 5.7% inWales and 6.4% in Northern Ireland.
It is estimated there are 8,300 UK bank branches left– withsomepredictions that this figure will drop by half over the next decade. It is thought rural areas have been hit particularly hard by the trend. Over the last year, the Bank of Scotland, Clydesdale Bank and the Royal Bank of Scotland have closed or are planning to close bank branches in Aberlour, Alford, Cullen, Fo c h a b e r s , Ke i t h , Lossiemouth, Lochinver, Stromness, Laurencekirk, Portsoy and New Pitsligo.
The FSB is writing to the Scottish Government and banking chiefs asking for their views on how to minimise the impact of this trend.
The figures are contained in anewreport from the FSB that reveals that branch closures are damaging local economies and making it harder for firms to access bank services.
The study features evidence provided by smaller firms in Lochinver and Invergordon, and further afield.
Businesses highlight the practical problems associated with travelling further to get change and to deposit cash or cheques. Firms also cite their preference for face-to-face interaction when seeking business advice about growth and finance.
The report looks at the negative impact closures can have on town centres and finds that branch closures combined with poorly maintained ATMs can harm the circulation of cash around local areas.
Andy Willox, the FSB’s Scottish policy convenor, said: “Banks are disappearing from Scottish high streets and this poses problems for both local firms and communities. 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. Further, because Scotland lags behind England in terms of both mobile and broadband coverage, the impact of the withdrawal of local services is exacerbated.
“It is unfortunate too that other large private and public bodies are choosing to consolidate their estates and withdraw to urban centres. This is an area whereweexpect leadership from councils and the Scottish Government.”
“Online banking does not fill the gap left by boarded-up branches”