‘Devastating blow’ to communities as bank and ATM closures begin to bite
Branch banking is a vitally important lifeline for many, writes the Rev Iain May
Last month, MPS on the Scottish Affairs Committee widely condemned RBS for failing to appreciate the impact of its decision to close dozens of branches in Scotland, describing the move as a “devastating blow” for communities affected. It urged the bank, which is still majority-owned by the taxpayer, to halt plans to axe up to 62 branches.
In response, RBS said the closures were due to the increasing numbers of customers using mobile and online banking.
Earlier this month, Castle Community Bank was asked to give evidence to the Economy Jobs and Fair Work committee at the Scottish Parliament who are investigating the impact of these bank closures. Much focus was on the widespread concern in communities the length and breadth of Scotland on the impact closures will have on everyday lives.
Indeed, local branches have been the lifeblood of community life for well over 100 years and the branch closure decisions already made by RBS have been keenly felt. So much so that the bank has in a limited number of cases temporarily reversed a closure decision.
The plans have attracted fierce criticism from ordinary savers and local businesses, alike. Even around the environs of Edinburgh, you don’t have to look too far to discover that for example in Juniper Green and Currie there are literally no branches available – no Bank of Scotland nor Royal Bank of Scotland branches, as the last Royal Bank of Scotland closed recently.
The chief executive of RBS recently confirmed their position that branches were closing as a result of customers moving on line.
This is all very well for those of us with access to online banking, but we must be mindful that there are many in our communities – particularly the elderly – for whom branch banking is a vitally important lifeline. Many of them do not like using an automated teller machine, let alone online banking.
Equally for the local business community, there is now a real concern about being able to bank cash because, when a branch disappears, there literally is nowhere for them to carry out transactions.
However, perhaps the most important point around a bank branch closure and one that can often be missed is that when a bank closes a branch, the ATM machine goes too.
For many of the poorest and most vulnerable in our communities the ATM is often the only way that they can access their cash. Many have basic bank accounts which operate on a cash card basis. Without the ATM there is no access to their cash.
Banks which are closing branches need to do more to ensure that after the branch is closed an ATM remains in place which they are still responsible for maintaining and which is accessible 24 hours a day.
Walk-in branch banking has been part of the fabric of our lives for centuries. The inevitable impact of technology will change this relationship forever. Nobody is saying that progress is not desirable, but a safety net needs to be in place for those who are unable to join the party.
Their voices should not be silenced because of the ‘creep’ of technology into the way the majority of us conduct our lives.
The Rev Iain May is one of the founders of Leith-headquartered Castle Community Bank. Castle Community Bank is completely not-for-profit with any surplus funds being ploughed back into communities around Edinburgh. The bank has no shareholders and is fully owned by its members.