Charities join protests over bank closures ‘nightmare’
●MSPS hear stark warnings of impact on elderly, businesses and tourism
The crippling impact of bank closures on communities, charities, pensioners and tourism have been set out in a series of stark warnings to MSPS.
People in many areas face a “nightmare” getting cash and access to banking services without travelling miles from their home, with growing concerns that the heart is being ripped out of many towns and villages as their last bank disappears.
The tourism industry, which supports thousand of jobs and accounts for hundreds of millions of pounds in spending, could also be hit as visitors struggle to access cash in some areas, evidence gathered by Holyrood’s economy committee has also shown.
The House of Commons Scottish affairs committee has already called on Royal Bank of Scotland to halt plans to axe up to 62 branches across the country, warning this will be “devastating” for communities affected. Bank of Scotland has also earmarked 49 branches to close this year.
MSPS will this week hear from community groups affected who are warning that the closures will have a disastrous impact. Elderly Scots are among those worst affected, charity Age Scotland said in its submission to the committee. It said: “We are told
by older people that dealing with a call centre for inquiries which they used to undertake in branch can be unnecessarily stressful due to the quality of the sound, remembering complicated passwords and security answers … and the fear of phone scams.”
Going to the bank is part of a routine for many older Scots that “gets them out of the house”, the body added, and there are fears the closures could undermine efforts to tackle the “devastating impact” of loneliness and social isolation.
The impact on smaller towns is set out in blunt terms by residents. In Dalbeattie, Dumfries and Galloway, the impact has been “awful” according to Erica Johnson, chairwoman of the local community council.
She said: “People have to drive or take the bus [two hours again] just to get money. People struggle to get cash for a taxi fare if they are going somewhere where the bus does not go, and you cannot get a mini statement to check your finances.”
Another Dalbeattie resident, Robert Mcgoldrick, said the closures have caused “real problems”. He said: “Our shops, hotels, pubs are having problems with cash flow. The retired have nowhere to open an account for their pension to be paid into.”
Meanwhile, Margaret Rae of Whitburn, West Lothian, described the situation with the closure of the bank there as a “nightmare” coming after other closures in the nearby towns of Armadale, Harthill, Fauldhouse and Blackburn.
She said: “The RBS branch in Whitburn was the biggest in the district. There was never less than ten people waiting to be seen; worst times there could be 20+ people queuing to be seen.”
Thelossofbranchesinlongniddry and Prestonpans in East Lothian meant disruption. Una Kerr said the replacement mobile branch stop near her was also withdrawn to cover further closures, including North Berwick.
Ms Kerr added: “On using the RBS branch in North Berwick twice in the last few weeks I have had to queue, so how can anyone say it is underutilised?
“By way of a sweetener, a notice in the branch suggests customers should come along to a launch of a mobile bank in the town. Why bother when it is likely to be killed off to accommodate areas in the next round of branch closures?”
According to self-catering industry body the ASSC, tourists could even be driven away as the dearth of cashpoints in remote areas escalates.
The ASSC said: “Many tourists and visitors, especially those from urban areas, readily assume that card facilities will be available. However, this is not always the case, thereby limiting potential spend.”
It added: “Bank branch closures may make it difficult to run a business in some parts of Scotland.”
Charity chiefs could also face the risk of failing to comply with relevant legislation due to problems with banks such as the “complex and lengthy” processes for change of signatories on accounts.
Scots charity regulator OSCR also warned that opening account difficulties and issues with online banking availability and services could also pose problems.
It said: “While there are other ways to conduct these transactions, having access to the local branch is viewed as important as a means of direct contact on issues that may arise.”
RBS said that it was responding to changes in the way its customers banked, with branch usage falling by 44 per cent since 2011, while seven in ten customers were now using mobile or online banking.
It added: “We recognise that every customer will have different banking needs and we are committed to ensuring all our customers receive the best possible service.”
“We recognise that every customer will have different needs and we are committed to ensuring all our customers receive the best possible service”
RBS STATEMENT
In the aftermath of the financial crash of 2008, banks put a great deal of effort into improving their reputations.
An industry-wide “makeover” saw a degree of humility – or, at least, the appearance of such – return after years of “masters of the universe” recklessness. But whether banks which had acted with such hubris truly had learned any lessons was always open to question. Without a genuine cultural change, promises of higher standards would never be more than PR spin.
Waves of bank closures suggest the new “human” face presented by the industry post-2008 may be superficial rather than substantial. Organisations such as Royal Bank of Scotland, which tops the list of banks proposing to shut branches in Scotland with 62 currently facing the axe, seem to care little about the impact on staff and customers of these closures.
We believe there is a strong case for RBS and others to consider not only the financial but the social implications of their actions. Charities, pensioners’ groups, and a number of local community organisations in areas where branches are earmarked for closure have warned of devastating consequences. According to submissions to the Scottish Parliament’s economy committee, growing numbers of people face difficulties getting cash or accessing banking services which are often many miles from their homes. For some, this hampers their ability to run businesses in parts of Scotland.
There are warnings, too, about the impact on tourism. Visitors to Scotland – seduced by expensive advertising campaigns – are entitled to expect that banks won’t make it more difficult to access (and spend) cash while they are here.
But it is not all about the bottom lines. Elderly people who may struggle with the latest technology are likely to be among the worst affected. And for them, the issue is about more than convenience, with campaigners warning the closures will leave increasing numbers of Scots for whom a visit to the bank represents part of a long-standing routine more socially isolated.
Of course, banks are in the business of making money but we feel there has to be more to their decision-making than profit. A banking industry which puts the needs of customers first and which thought through the ethics of every decision would, we dare say, continue to flourish.