Under-fire RBS chief says you cannot stop change

THE head of RBS has insisted it is not possible to hold back a shift in the way people bank as he defended branch closures.

RBS chief executive Ross Mcewan has said we are heading towards a cashless society and claims fewer than one in four of the population in Scotland now chooses cash as their preferred method of paying for things.

The bank chief, who is facing renewed criticism for branch closures, said: “We can’t hold back the tide of change.

“Across the UK last year, cash payments represented around 40 per cent of transactions, and just 15% of the value. We are moving to a lesscash society.”

It comes as a report from the Commons Scottish Affairs Committee says RBS has failed to appreciate the damage its decision to close 62 branches will inflict on many communities across Scotland.

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.”

But Mr Mcewan said: “I have a great affinity with hard currency but it’s because of the customer benefits of contactless and digital payments that are overtaking traditional notes and coins and have replaced the majority of in-branch transactions.

“Change can be difficult, but with new banking services, customers are voting with their feet and adopting them in droves. Cash has long been king and will always have its place, but today we have a more diverse, safer and convenient range of payment options than ever before.”

He added: “From Amazon to John Lewis, car to council tax, supermarkets to the bus or train, the way we choose to pay is going in just one direction: more digital and increasingly less cash.

“I see these changes as incredible improvements in banking and payment services. Many small businesses in Scotland tell me this is revolutionary for them, too; less cashhandling means more time can be focused on running and growing their business.”

The bank faced anger as it planned to shut more 62 branches with the loss of about 158 jobs, leaving Scotland with less than 100 branches for 1.7million customers.

Ten of the closure-threatened branches were given a stay of execution when the bank said they would remain open at least to the end of the year.