“Universal dismay” has greeted the news that the Bank of Scotland is to close more branches in Argyll and the islands, said a leading councillor.
In his role as economic growth policy lead for Argyll and Bute Council, Councillor Alastair Redman has written to a senior banker to tell him in detail how badly the Bank of Scotland is failing its rural customers with its planned closures.
The Bank of Scotland on Harbour Street in Tarbert will shut permanently on Monday April 29 2024. The branch in Bowmore on Islay will follow suit when it closes on Wednesday May 8. The Dunoon branch closed at the beginning of this month, despite a petition against it.
“This will effectively create areas with almost no access to cash which is particularly worrying given our ageing demographic and many others who have particular needs that makes them unable to access digital services, or travel long distances,” said Councillor Redman.
“If these closures were implemented, as recently publicised, many of our communities would no longer have a banking facility in their community, or wider area,” he added.
“Argyll and Bute is an economically fragile rural area with limited public transport and long distances to the central belt and our nearest city Glasgow.”
Poor broadband and mobile connectivity exacerbate the problem.
Councillor Redman also questions whether the bank has taken into account that in the tourist season the population of some areas can increase significantly with tourists who need access to banking.
“For the business sector in the remote areas and islands the loss of a bank branch will cause serious harm,” he said, adding: “The vast majority of our local businesses are either small or medium-sized enterprises where the relationship developed with the bank has been crucial in their early development and as they grow.”
The loss of local banks also means the loss of jobs, the councillor believes.
“Good quality jobs with career opportunities are hard to come by in our area and the closure of these banks will end a key route for young people to enter the job market and stay local.
“At a time when we are making great efforts to retain young people in our area this recent announcement, on top of many others that have gone before, comes as another significant blow to this ambition.”
Urging the bank to reconsider its decision he pointed out: “When an area such as Argyll and Bute has no banking facilities available the term national can no longer be applied to a Bank that considers that to be a key function of its role.”
A Bank of Scotland spokesperson told The Advertiser: “The way customers choose to
bank with us has changed rapidly in recent years, and we now offer a wide range of
options for their everyday banking needs.
“This includes our mobile app, online and over the phone. Customers can also bank
with us through the Post Office or by speaking to a Community Banker – who provide
targeted, face to face support in local communities. All colleagues will be offered
other roles across our business.”
The bank also said that Community Bankers will be introduced in Bowmore, Kilcreggan and Tarbert; they provide face-to-face services to customers in their local communities, including making payments, account enquiries and online banking support.
Furthermore, LINK has recommended an additional ATM in Kilcreggan. Link is the
banking industry’s access to cash through services such as cashback at retailers’ tills
and banking hubs.
“As with all proposed closures, these plans have been through LINK’s independent
cash-access assessment. All closures have been made in line with FCA (Financial
Conduct Authority guidance,” the spokesperson added.