Remote bank shutdowns could pressurise elderly

Financial: Closures might push older folk into handing over power of attorney

Bank branch closures in remote communities could “push” vulnerable and older people into handing over power of attorney early, a survey has found.

The concerns were raised in a new study, commissioned by Highlands and Islands Enterprise (HIE), which is due to be published in full next month.

The development agency revealed early findings from the ongoing survey in evidence to Holyrood’s economy committee, which is investigating bank closures amid a furore over a move to shut dozens of RBS branches across the country.

In its response to the inquiry, HIE said the research had found “strong feeling that banking should be viewed as a basic part of the local infrastructure and thus should be available as standard provision”. The study also revealed a “sense of a disconnect between the public policy desire to expand the tourism season” and the “withdrawal of core services that actually allows that to happen”. And on power of attorney – a legal permission for someone else to make decisions on behalf of another person – the research revealed further “concern” and the “suggestion that physical impairment might push some people with capacity to go for power of attorney when they otherwise wouldn’t need to”.

It added: “In some communities, the withdrawal of bank services, along with the gradual erosion of other services, is affecting community confidence and exacerbating concerns around fragility.

“It is also seen as counter-intuitive to policies aimed at creating sustainable communities, population attraction and inclusive growth.”

Plans by RBS to close 62 branches across Scotland were announced last December, but communities in Barra, Beauly, Tongue and Kyle were subsequently given a 10-month reprieve – with the long-term future of their local branches then to be independently reviewed.

Another submission to the Holyrood inquiry was made by Moray Coast U3A, the local branch of the University of the Third Age (U3A) for retired and semi-retired people living between Banff and Elgin.

It said: “It’s not just a question of bank closures and the extraordinarily slow pace of being able to change signatories and the general inconvenience and hassle for treasurers.

“RBS gives us an account because it is basically taxpayer-owned and is required to do so. What are the other banks offering? Very little that I can see.”

Meanwhile, there was a plea from the Business for Scotland group for the Scottish Government to set up its own retail bank in response to the “clear market failure”. Comment, Page 25

“Might push some people with capacity to go for PoA”