38% reduction in Scottish branches since 2015 risk banking deserts

A new report from consumer watchdog Which? has revealed that Scotland has lost 38% of its bank branch network over the last five years.

There have been 396 bank branch closures in Scotland since 2015 and eleven branches are now open for just one day a week according to the report.

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."

ENDS