The Courier & Advertiser (Perth and Perthshire Edition)
RBS chiefs blasted by MPs’ report into branch closures ‘damage’.
Committee urges bank to halt plans to axe 52 branches in Scotland
RBS has failed to fully appreciate the “damage” that will be caused by its decision to close dozens of its branches, a report from MPs has found.
The Scottish Affairs Committee urged the bank, which is majority-owned by the taxpayer, to halt plans to axe 52 branches across Scotland, describing the move as a “devastating blow” to those communities affected.
The RBS branches due to close are in Aberfeldy, Pitlochry, Perth South Street, Kinross, Dundee Stobswell, Dunblane, Montrose and Comrie, although the latter has been given a reprieve.
RBS said the closures were a response to the increasing numbers of customers using mobile and online banking.
However, the plans have attracted fierce criticism from local communities, business groups and politicians. The Courier’s Save Our Banks campaign is also demanding plans are shelved.
The committee report said closures would remove “vital services relied upon by businesses and disproportionately affecting vulnerable customers”. It states: “We are not convinced that RBS fully appreciate the damage these closures will do to the communities and businesses that rely on these branches.”
The committee also called into question the assumptions made by the bank that led to the decision.
Impact assessments carried out by the bank do not provide sufficient information on the situation in relation to individual branches, it found.
“For example, whether customers have access to a suitably reliable broadband connection to allow them to use online banking, the practicality of travelling to the next nearest branch or the effective availability of alternative services such as mobile branches,” the report states. “Without this information we do not see how these documents can be said to have properly assessed the impact of closures on customers, businesses and communities.”
The committee questioned how the 10 branches given a six-month reprieve would be evaluated and on what basis decisions on their futures would be taken. Committee chairman Pete Wishart said: “The loss of a permanent bank, and the services it provides, cannot be replicated by the occasional visit of a mobile bank or community banker.
“RBS did not consult adequately and even at this last stage should reverse their decision to close these branches.”
Ochil and South Perthshire MP Luke Graham endorsed the report. “The mitigations proposed by RBS are utterly pathetic and entirely inadequate,” he said.
An RBS spokesman said: “We have listened to customers, colleagues, communities and elected representatives, and welcome the committee’s recognition that we have engaged and responded.” He added: “Across Scotland, usage of our branches is down 44% since 2011; only 1% of our customers in Scotland visit their branch weekly.
“We recognise that every customer will have different banking needs and we are committed to ensuring all our customers receive the best possible service.”