Airdrie & Coatbridge Advertiser
MP debates impact of local bank closures
Anum Qaisar highlighted the reducing number of banks in her constituency as she led a Westminster debate and is calling for an independent body to assess the impact of high street closures.
The Airdrie & Shotts MP spoke of the impact of closures on older people, those without transport or online access, small businesses, charities and town centres.
She was prompted to lead the debate following January’s closure of the Virgin Money branch in Airdrie, leaving the town with only two financial institutions – only to see it followed by the recent announcement that the Bank of Scotland branch in Shotts will be closing.
Ms Qaisar told how four banks in Airdrie have closed in the past six years, leaving only Bank of Scotland and Nationwide serving the town; while the newly-announced Shotts closure will be the town’s third since 2015.
She spoke of concerns about the development of “banking ghost towns” and said: “with only a handful of banks on our high streets, now is the time for government intervention.
“Banks tell us that the decision to close a branch is driven by customer behaviour and demand, but I would argue that banks are pushing this change.
“The government should consider introducing an independent body to conduct assessments, including of the impact on a local community, before a bank closes; such a localised assessment could ensure that decisions are reflective of the needs of the community. Face-toface banking must not be lost.”
Ms Qaisar added: “Virgin Money in Airdrie closed its doors in January [and] my constituents were told they could travel to the nearest branch in Baillieston – that is 20 minutes by car or a bus journey of an hour.
“[Those] who do not live in Airdrie town centre have considerable journeys to make; that poses additional barriers to those who are either financially vulnerable or struggling with mobility.”
She also praised a digital skills project involving older people living at Lorne Gardens retirement complex in Salsburgh but added that the “mass exodus of banks from our high streets poses huge concerns for those who are not digitally literate, have no access to technology or are simply uncomfortable with the transition away from cash.”
Ms Qaisar’s debate was supported by fellow Lanarkshire MPS, including Angela Crawley of Lanark & Hamilton East and Marion Fellows of Motherwell & Wishaw.
She added: “i’m disappointed that Bank of Scotland have announced the closure of the Shotts branch. I have requested an urgent meeting with bank officials to discuss the closure; I encourage those impacted to email me and I will raise your concerns.
“Neil Gray MSP and I will be working together as access to banking facilities is vital for Shotts and surrounding villages.”
Financial secretary to the treasury Lucy Frazer said:“the way consumers engage and interact with their banks is changing. The Financial Conduct Authority has set out its expectations of firms when deciding whether to reduce their physical branches or free ATMS; [they] are expected to carefully consider the impact of a planned closure on their customers’ every day banking and cash needs.
“As well as the innovations around mobile and online banking, there are alternative options to access services via telephone banking and also, importantly, via the Post Office [which] plays a significant role in servicing people’s everyday banking needs.
“Last year, the government consulted on proposals for new laws to make sure people need to travel only a reasonable distance to pay in or take out cash, and will set out next steps in due course.
“It is right that the impact of branch closures on people and communities is understood so that everyone continues to have access to the services they need.”