The £2k a month mobile bank
A MOBILE bank introduced to Barra will cost RBS about £2,000a month to operate including ferry fares, with critics now questioning the economic argument for the closure of the island’s last branch.
RBS has recently come under fire for its sweeping branch-closure programme taking place this year, with some 62 set to be affected.
Among those up for closure was Barra’s only branch in the island’s main village of Castlebay.
It has since been given a reprieve until the end of the year, when it will be up for review.
The Hebridean isle, 63 miles from the mainland, is home to about 1,100 people and, after the branch’s closure, they would be dependent on a mobile banking service, with the next nearest branch a ferry ride and 27 miles away on a neighbouring island.
However, Western Isles MP Angus Macneil said shutting the island’s branch and replacing it with a mobile banking service would not be as cost-effective as RBS has been insisting.
Mr Macneil, who lives on Barra, said RBS would spend more than £2,000 a month on travel costs if it proceeds with the closure. The mobile bank is due to visit the island three times a week at a cost of more than £200 a return ferry trip, together with staff costs and any unforeseen travel disruptions.
He said: “Closing branches is supposed to be a money-saving exercise, but in the case of the island branches, the costs involved in a mobile banking service might prove otherwise.
“When RBS adds up all the travel costs and the additional unexpected costs that can incur if there is travel disruption, they should think again.
“One department of RBS is pulling the wool over the eyes of another department if they’re selling the closure of the Castlebay branch as a saving.
“I hope the independent reviewer will also look at this issue, and the fact that the RBS van will put further pressure on an already busy ferry service.
“The local community are telling RBS to drop their plans; the Scottish Affairs Committee are telling RBS to drop their plans; and now their own bank balance might tell them to drop their plans for Castlebay and Lochboisdale too.”
His move comes as RBS recently defended its closure of 52 Scottish branches this spring, saying it was a necessary response to the challenges posed by dramatic changes in consumer behaviour.
Originally, 62 across Scotland were due to close, but 10 branches are to remain open until at least the end of 2018 as part of a full independent review.
If the bank finds there is greater usage of a branch, its future will be subject of a further review. Alongside Castlebay, branches under consideration are Biggar, Beauly, Comrie, Douglas in Lanarkshire, Gretna, Inveraray, Melrose, Kyle and Tongue.
Speaking at the bank’s general meeting in Edinburgh, chief executive Ross Mcewan said that he had personally reviewed all the proposed branch closures and thought about the “the ramifications on vulnerable customers”.
He said that mobile branches operated by the taxpayer-backed lender call at 440 places in Scotland, while customers can complete tasks such as paying in cash and cheques at 1,400 post offices.
The closures would leave the country with less than 100 branches.
His comments came as RBS reported a profit of £792 million for the first three months of the year, up from £259m for the same quarter last year.
Mr Macneil has remained vocal in his criticism of RBS following the original decision to close the branch in Castlebay and reduce the opening hours of the Lochboisdale branch on neighbouring South Uist.
He said Barra’s branch is better used than the claim by RBS.
The island’s only ATM, which is attached to the bank in Castlebay, was also saved after a U-turn by RBS.
Meanwhile, an online petition urging RBS to reconsider closing the branch has topped more than 11,700 signatures, having been signed by thousands of people who do not live on the island.
Responding to the branch closures, an RBS spokesman said the bank was “committed to ensuring all our customers receive the best possible service”.
Their own bank balance might tell them to drop their plans for Castlebay