North and North East MSPs have called on all High Street banks to make a “branch promise” to help communities struggling from a litany of closures.
In a Holyrood debate on the impact of bank branch closures, Scottish Conservative MSPs said poor broadband speeds, inadequate public transport links, and the limitations of using Post Office branches for transactions mean banks should keep a physical presence in rural areas.
They called for a joined-up effort from banks, Link and Cash Access UK to safeguard essential services, particularly for elderly and vulnerable people who rely on in-person banking.
Link is a not-for-profit operation, one of its roles being to “protect access to cash across the UK” and foster “financial inclusion.”
Tim Eagle and Liam Kerr said High Streets rely on easy access to cash for customers, and cashless transactions present an expensive problem for small businesses.
According to Link, 233 bank branches have closed across Scotland since February 2022, of which 40 are in the Highlands and Islands region.
The lower Deeside area of Aberdeenshire and Aberdeen used to have eight banks but now has none.
Mr Kerr said: “After an approach from Cults, Bieldside and Milltimber community council for a banking hub was rejected by Link, I got involved.
“I wrote to Link and pointed out that I speak to constituents every week at surgeries, in shops and on doorsteps, and they are telling me just how deeply they are affected by the loss of local banking services. Many are elderly, isolated and living with mobility issues.
They are frightened of the internet, distrustful of online banking and increasingly cut off from the financial services that they once relied on…
“Link has washed its hands.
“I recently set up a petition that would show the strength of local support. It has hundreds of local signatures already.
“I have been contacted by local facilities, such as the churches and the Cults library team, offering to host a banking hub.”
Tim Eagle spoke after Lloyds Banking Group announced it would close four of its Bank of Scotland branches, in Nairn, Dingwall, Gairloch and Tain.
He said:
“Although I welcome the measures that are being taken by some banks, such as Nationwide’s pledge not to close any branches until at least 2028 and Barclays halting closures for 2025 and 2026, the sad truth is that more closures will come unless banks figure out ways to diversify their branch offering and be more involved in their communities in order to increase footfall.
“That might seem like wishful thinking, but it should not be impossible for major banks to do things differently and to do more to protect the local bank branch rather than just concede and shut up shop.
“The closure of bank branches is one more reason for rural depopulation.
“The loss of such services in our small rural towns and villages is one more reason for people to leave and for people not to move into those areas in their place.
“We must do more to reverse this trend.”
