Residents describe what happens when a town is ‘unbanked’
● Cambuslang residents submit report to MPS’ banking inquiry
The devastating effects on a local high street following a raft of bank closures in a Scottish town have been detailed in a report for MPS.
What Happens When A Town Becomes Unbanked? by Cambuslang Community Council, submitted to the Scottish affairs committee inquiry on access to financial services, examines the impact on residents and businesses of the town in South Lanarkshire, losing its three bank branches – Royal Bank of Scotland, Clydesdale and TSB – within 18 months.
The report follows research by Which? revealing Scotland lost more than a third of its bank branches in the past eight years. The number of branches in 2018 was 1,015 while in 2010 there were 1,625.
People in the town, the fourth largest in South Lanarkshire with a population of 25,000, say they are facing difficulties accessing cash. Those on low incomes are struggling to pay bus fares to a town with a bank. Businesses say they are losing money as people abandon local shops, taking their custom to towns with bank branches.
There are also other business difficulties such as being unable to take time away from the business to bank cash, or withdraw enough cash from ATMS to pay staff.
Suggested alternatives such as the Post Office have come in for criticism due to factors such as the length of time it can take for payments to clear.
One resident said; “My husband runs a business and I workfulltime.it’shardenough to find time to get to the bank without having to travel. I also feel less safe having to travel with sometimes significant sums of money to bank.
“I also now have to take my elderly parents to the bank as it’s simply too far for them to travel alone. It means more car use, more cost [as well as extra fuel, there are parking charges in Rutherglen].”
The report’s conclusions include demands for faceto-face banking at a local branch; that bank closures must take social deprivation into account and that the effect on businesses has been underestimated.
Professor John Bachtler, chairman of the community council, said banks were worsening social exclusion.
He said: “The findings include heart-rending accounts of the financial hardship suffered by people least able to deal with the consequences of branch closures: the elderly, the disabled, benefit recipients, those with caring responsibilities, and those on low incomes.
“Further, the closure of bank branches is undermining UK and Scottish government policies for town centre regeneration.”
A spokesman for UK Finance, representing the UK banking and financial services industry, said: “Research shows consumers are increasingly choosing newer ways to help them with their banking. But technology is not for everyone and maintaining access to cash is vital to ensure no customer is left behind.
“This is why all the highstreet banks have arranged for everyday banking services to be available through 11,500 Post Offices and mobile bank branches to reach more rural communities, while investing in the existing ATM network to ensure continuity of service when ATMS are no longer commercially viable.” Residents of a Highland village, facing difficulties since their bank branch shut down, have been told their mobile bank’s hours will be reviewed.
Philip Grant, Lloyd Banking Group’s “ambassador for Scotland” visited Bonar Bridge in Sutherland yesterday to meet Michael Baird, who led the campaign against the closure of the Bank of Scotland in the village and has highlighted the shortcomings of the replacement mobile banking service.
Mr Baird said the meeting had been productive but did not address all the concerns of people in rural areas. “The meeting was partially successful. Mr Grant promised to review the number and length of visits by the mobile bank. However, he made it clear he was not going to open up branches and that more needed to be done to make people aware that they need to use the Post Office.
“He also promised to set up a ‘teach-in’ on internet banking.”
A spokesman for the banking group said: “The vast majority of customers tell us they are happy with the service and convenience provided by our mobile branches, however we are always keen to hear their feedback.
“A number of important points were discussed, including helping customers with their digital skills, and we have agreed to review what further actions we can take.”
“The findings include heart-rending accounts of the financial hardship suffered by people”