Bank branches closing at rate of two every week
Scotland is worst-hit area in UK for closures since 2015
BANK branches have closed at a rate of two a week in Scotland over the past four years, bringing fresh concerns about how consumers access their money and vital financial services.
Scotland is the worst-hit area in the UK for bank branches shut or scheduled to close between 2015 and 2018, according to a new report from the consumer organiser Which?.
It estimates there are 200 cash deserts in the UK – places where there is no access to either a branch or an ATM within a “reasonable distance” – and two-thirds of these are in Scotland, usually in rural areas.
Which? has now called for a “robust consultation” to take place to ensure the needs of bank customers are being met before their access to financial services is removed.
One in eight of the 2,868 UK bank branches that have shut or are about to close is in Scotland, with 368 axed over the four years.
That eclipses the 361 shut in the south-east of England, the 353 in the north-west of England and the 327 in the south-west.
Taxpayer-controlled Royal Bank of Scotland (RBS) is responsible for the biggest share of the closures in Scotland with 150, followed by Bank of Scotland with 86 and Clydesdale which has disposed of 59.
The research comes as Scotland faces being one of the worst-affected areas of the UK as proposals are lodged to reduce fees for card machine operators which is set to sound the death knell on thousands of free “hole-in-the-wall” machines.
Just a fortnight ago the board of RBS refused to yield to demands for a halt to branch closures with chief executive Ross Mcewan suggesting the “in-decline” Post Office is “the best solution” to fill the void of bank branch closures.
In December, RBS announced it would shut 62 Scottish branches with the loss of 158 jobs leaving Scotland with fewer than 100 branches for 1.7 million customers. Ten of these were later given a stay of execution, until at least the end of 2018, pending a review.
Thomas Docherty, of Which?, warned it is the older customers and the vulnerable that will be most affected by the cuts.
“Online banking is growing but, according to UK Finance, only 56% of customers currently use online banking, so what is happening with the other 44%? How are their needs being serviced?” he said.
Age Scotland said the data was “alarming news to older people in Scotland” and called on the banking industry to look again at the concept of sharing branches in smaller communities, suburbs and rural areas.
The Federation of Small Businesses in Scotland said the trend is making it harder to run a business, adding that there are examples of business owners travelling for hours on a weekly basis just to deposit cash.
Stuart Mackinnon, external affairs manager for the FSB in Scotland, said: “A local branch closure hits high streets, not only reducing local footfall but also delivering another empty building in a town centre.”
An RBS spokesman said: “As customers continue to change the way they bank with us, we must change the way we serve them. So we are investing in our branches and re-shaping our network, replacing traditional bricks-and-mortar branches with alternative ways to bank, including community bankers, mobile branches, and post offices, so that we can reach even more customers.
“We are committed to ensuring our customers and communities are able to continue accessing quality banking services and we have engaged with customers since we announced these branch closures to ensure they are aware of all the alternative ways to bank in their area.”