Alarm as one in three Scottish bank branches shut in four-and-a-half years

Investigating the bank branch network in Scotland between January 2015 and August 2019, Which? found that a "staggering" 396 branches (38%) shut down as banks continued to close branches at an alarming rate - cutting the overall branch network from 1,039 to just 64. 

 It also found that Scottish customers already struggling with a "devastated" branch network can also now face "severely curtailed" opening times.

It found that 11 branches open just one day a week, while 31 are open for just two.

And one in seven (14% and 87 branches) only open three days a week or less.

Which? wants government action to ensure that millions of people who rely on it as a payment method are not left behind as digital payments grow in popularity.

READ MORE: Poorest Scots hit hardest by cash machine exodus

And it said that with around a third of the population still not using online banking, banks should explore more innovative ways to ensure those who rely on face-to-face banking are able to access it.

Jenny Ross, money editor of Which? said: “Banks are closing their branches at an alarming rate in Scotland, which risks shutting many people out of vital financial services and their ability to access their own cash.

“Bank branches play a crucial role within communities - serving consumers and businesses alike. The industry must ensure no-one is left behind by the digital transition and that when banks shut their doors they don’t shut their customers out of important banking services.”

Which? found that RBS had closed 74 percent of its bank branches across the UK during this period - in Scotland 158 branches closed (63% of its Scottish network).

The study found that the Royal Bank of Scotland had closed nearly three in four (74%) of its bank branches across the UK during this period. In Scotland 158 branches closed (63% of its Scottish network).

The Bank of Scotland, meanwhile closed 94 branches, equivalent to nearly one in three of its network. This was followed by Clydesdale (59 closed, 47%), TSB (39 closed, 21%) and Santander (36 closed, 44%).

READ MORE: Banks must pledge to keep a branch in every town or face legislation, say Scottish MPs

The hardest hit Westminister constituencies were Edinburgh East, which lost 11 branches, equivalent to almost two-thirds (61%) of its network and Moray which has shed three-fifths (59%) of its branches, seeing 16 close.

The consumer organisation said that in some areas banks offer mobile branches, which provide a range of everyday financial services but said the "simply do not offer the same convenience of access as a bank branch"

It added: "These can be scant consolation for a dedicated branch and risk leaving many customers struggling to carry out their banking needs through a very limited window of service.

"Which? recognises that the shift towards online banking offers great benefits and convenience, but if banks close physical branches they must communicate effectively with communities and ensure people have all the support they need to make the most of digital alternatives."

Commenting, Age Scotland’s Chief Executive Brian Sloan said: "Bank branches have been disappearing from Scottish high streets at a rate of knots leaving many communities and customers without access to a valuable face to face service. Many older people face particular challenges when it comes to managing their money and the half a million people in Scotland over the age of 60 who do not use the internet are being left behind with the move to digital by default banking.

“Coupled with the considerable reduction of free to use cash machines in Scotland it is becoming harder and harder for older people to bank in the way that works for them. The alternative banking solutions such as the Post Office network only works for the most basic of needs and for many older people who need face to face advice on scams, financial health checks and access to new products, they do not work at all.

“Rural and remote communities are often the hardest by closures as banking deserts begin to exist. In fact, towns as big as Lochgelly and Dornoch are left without a single bank branch.

“The solution to closures is for banks to develop the concept of shared branches. These banking hubs would exist with a number of banks operating under one roof, offering customers the face to face service so many need and want as well as saving on building overheads.

“We know this model is already working for business banking with new pilots in parts of England, so it should be further explored for personal banking. This would help to alleviate the risk of the last bank in town closing and provide a better service to customers who are unable to adapt to the rapid pace of digital banking and local businesses in need of branch services."

A Bank of Scotland spokesman said  “Customers are changing the way they choose to bank with us, and this means that the number of customers visiting our branches is steadily declining. Although customers are increasingly using digital banking for their everyday needs, we want to provide them with a range of options and are committed to maintaining Scotland’s largest network of high street branches.

"We continue to make sure that we have branches in the right places, and if we make the difficult decision to close a branch, we ensure that there are suitable alternatives in place.”

RBS were approached for comment.