SCOTLAND has lost one in three of its bank branches in the last eight years, bringing new concerns about how consumers access their money and vital financial services.
An analysis from Which? shows that Scotland had 610 fewer banks or building societies across the country in 2018 compared with 2010 - slashing the total number of branches from 1,625 to 1,015.
The losses are compounded by a rise in the rate of cashpoint closures in Scotland The Herald revealed in January that Scotland was losing cash machines at a rate of more than 40 a month in Scotland raising new worries about how people access their money.
LINK, the UK's largest cash machine network revealed to the Herald show that in November there were 6037 of their cashpoints in Scotland - 330 fewer than in March.
And the number of free to use cashpoints has also dropped by nearly 200 over the eight months to 5,198.
Now Scots public finance and digital economy minister Kate Forbes has written to the economic secretary to the Treasury backing calls for a single regulator with the "duty to protect acess to cash, ensuring that it remains accessible to all".
READ MORE: More than 40 cash machines shut down every month in Scotland
She said: “Cash payments remain an essential part of day to day life for many, especially for vulnerable consumers and those in rural communities. The recent loss of free to use ATMs, on top of the wave of bank branch closures across the UK, has hit Scotland’s communities and businesses disproportionately hard.
“I urge the UK Government to continue to press the Payment Systems Regulator (PSR) to use its powers in a robust and proportionate way, ensuring that cash remains a viable part of the financial infrastructure across the UK."
The research found that Edinburgh South West was hardest hit by the cuts with 135 closures, cutting the network to just 30 remaining branches in 2018. This is followed by Glasgow Central, which lost 70, Edinburgh North & Leith, 65 and Edinburgh East, 45.
Meanwhile, Angus, Dundee West, Falkirk and Paisley & Renfrewshire North all lost 15 branches.
The consumer organisation's own bank closures tracking since 2015 found that RBS has closed most branches - shutting 158 of the 399 banks that have disappeared.
It is followed by Bank of Scotland (86), Clydesdale (59), Santander (38) and TSB (35).
Concerned by the double blow of cashpoint and bank closures across Scotland, Which? has urged the government to install a regulator to ensure no-one is left behind by these rapid changes to the payments landscape.
The consumer organisation said: "This intervention is badly-needed in rural areas, where people may face longer journeys to access cash and broadband speeds are gradually improving from a low level.
"But it is equally necessary in urban areas, where cash is vital as a back-up when card and cashless payments collapse."
Which? research also revealed that UK banks were hit by 302 IT shutdowns in the last nine months of 2018 - that’s more than one major IT or security failure every day that prevents customers from making payments. While digital payments are rising, cash is still a necessity for more than 25 million people across the UK.
A previous Which? survey found that three in four Scots use cash frequently, while just four percent said they rarely use this payment method.
As MPs on the Scottish Affairs Committee meet in Westminster today (Tuesday) to discuss access to cash, Which? is warning that without urgent regulatory action the UK risks drifting into a no-cash society that could shut people out of paying for local goods and services.
READ MORE: Move to give cash machines in Scotland legal protection as thousands face axe
Gareth Shaw, Which?'s head of money said: “These ongoing closures could have a huge impact on communities across Scotland, stripping millions of people reliant on cash of their ability to go about their daily lives.
“Cash is also a vital backup when digital systems fail – so the UK Government must appoint a regulator to oversee these changes and ensure no-one is shut out from paying for local goods and services.”
Stuart Mackinnon, external affairs manager for the FSB in Scotland, said: “These figures chime with FSB research showing bank branches closing faster in Scotland than elsewhere in the UK. We agree with Which? that relatively poor Scottish digital connectivity – especially mobile coverage - exacerbates the impact of these closures.
“Not only does the closure of a bank branch make it more difficult for businesses to access banking services, it also leaves another ugly gap on a high street or in a town centre. We also see often banks tear out their ATMs at the point of closing a branch, removing another important source of cash and way to access financial services.
READ MORE: MSPs launch inquiry into bank closures across Scotland
“For many businesses, as long as a significant share of their customers want to continue to use cash, there needs to be appropriate local financial infrastructure. Policymakers need to take action to stop financial institutions removing this infrastructure from our communities.”
The Access to Cash Review published earlier this month warned that the cash system is "on the verge of collapse" and called for ministers and regulators to step in urgently to ensure cash is easily accessible, warning that digital payments do not yet work for everyone.
The findings made said "cracks in the system are showing" - and bank branch and ATM closures are just the "tip of the iceberg" while the country was at risk of "sleepwalking into a cashless society".
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