A study by AI and analytics SAS has found that Argyll and Bute could be ‘bankless’ in the future.
The study of seven of the country’s major banks found that Argyll had lost 94 per cent of its branches in the last three years and if that rate of closures continues, the area will have no branches at all.
The bank closures study by SAS compared the number of bank branches open in 2020 across all local constituencies in the UK to the number closed over the last three years, to understand the annual bank closure rate.
With an annual bank loss rate of 31 per cent, Argyll and Bute’s population of 60,386 could be without a nearby branch.
The study found that 80 constituencies across the UK have lost more than 80 per cent of their banks in the last three years, with an annual bank loss rate of more than 25 per cent.
The average constituency across the UK saw 51 per cent of its banks close in the last three years, with a branch loss rate of 17.3per cent.
The study concluded that out of the 10 areas most likely to be ‘bankless’ in 2024: Ross, Skye and Lochaber (18,819 people per branch) was first; Argyll and Bute second (8,626 people per branch); Dumfriesshire, Clydesdale and Tweeddale, Scotland (800 people per branch) third and North Ayrshire and Arran (20,320 people per branch) seventh.
Louise Potts, head of banking, customer advisory at SAS UK, said: “Online banking has revolutionised personal finance, making it easier for customers to carry out day-to-day transactions whatever their location.
“Analytics and AI has also personalised the online experience, improved responsiveness and helped with fraud prevention, but it’s not always a viable option for everyone. In-person banking services provide crucial services if you’re struggling to access the internet or find a solution online.
“Banking hubs have become a new alternative for those who don’t have access to a traditional branch.
“Owned by Cash Access UK and run by the Post Office, banking hubs provide access to a number of high street banks, giving people the option to deposit, transfer and withdraw money from most major banks – all under one roof.
“Ultimately, everyone needs access to banking. Our research highlights the areas that may need support, whether it be technological advancements to improve internet access, or consideration for the opening of a new banking hub.”