Being able to pop into a local bank branch used to be very easy. For places where there wasn’t one there was often a mobile banking service. The local bank is disappearing from many locations across the Highlands and Islands with customers either having to go to a larger town or rely on online banking.
Highlands and Islands Labour MSP Rhoda Grant brought the issue up in the Scottish Parliament on 11th of January in a debate on the loss of banking services across rural Scotland.
Rhoda Grant explained that The Bank of Scotland is ending mobile banking branches in 50 locations across Scotland, 13 of which are in the Highlands and Islands, and she added ” Those mobile banks were a compromise when local branches were closed, and yet they, too, are closing.”
“In Caithness, there are only seven branches left of any bank at all. Since 2015, Caithness has seen a 72% decline in branches. It is the same story elsewhere.
“In Moray, there has been a 66% decline.
“In Ross, Skye and Lochaber, there has been a 65% decline.
“In Inverness, Nairn and Badenoch and Strathspey, there has been a 50% loss. Indeed, across the whole of Scotland, 60 % of branches have closed since 2015.
“Lairg is losing its Bank of Scotland mobile bank, and the nearest alternative branch is Golspie, which is 18 miles away—that is a 36-mile round trip.”
Pointing out the sustainability of communities Rhoda Grant said: “We are all concerned about depopulation in rural areas. If these services are discontinued, it will make it harder to do business. That makes it harder for people to live in rural areas, which adds to depopulation.”
Rhoda Grant was supported by MSPs across the Chamber. Emma Harper, SNP MSP for the South of Scotland pointed out the effect the loss of local banking facilities was having in Dumfries and Galloway.
She said ” Constituents report that they feel that it is a betrayal of the promise that the Bank of Scotland made when it previously closed branches, citing that mobile services would be made available. The withdrawal of the services will leave many older and vulnerable people, including those who do not and cannot use online banking, without access to services.”
Murdo Fraser, Conservative MSP for Mid Scotland and Fife said that the loss of mobile banking facilities affected a wide range of communities across Mid Scotland and Fife. “The list of communities across Perthshire that are currently visited by the Bank of Scotland mobile branch includes Aberfeldy, Bankfoot, Errol, Scone, Methven, Dunning, Blair Atholl, Auchterarder, Luncarty, Coupar Angus, Murthly, Stanley, Kinross and Killin.”
Kate Forbes, SNP MSP for Skye, Lochaber and Badenoch informed MSPs that on 13th May 2024 , the mobile branch will no longer go to Fortrose; on 28th May, Kingussie will be without banking facilities; and, on 29th May, Beauly.
Kate Forbes said that ‘cash still matters’ and that the lack of banking facilities affects local businesses , she continued, “It is the same for families and households, for whom every penny matters in order to make ends meet. It has been well documented that those who are most affected by poverty and those who deal the most with fragile finances will be left behind by these decisions.”
Labour’s Richard Leonard (Central Scotland) widened the debate reminding MSPs that “the Lloyds Banking Group, the owners of the Bank of Scotland, who are behind these proposals, has shut down over 1,000 local branches since 2015, 1,144 of which were Bank of Scotland branches. Another 16 Bank of Scotland branches are scheduled to close in 2024. “
He said: “In the banking crisis, £137 billion of public money—of our money; of the people’s money—was injected in the form of loans and capital to stabilise the financial system, to support the banks, including HBOS, and to bail out their shareholders.
“On top of that, £1 trillion of public money—of our money; of the people’s money—was put up to provide shareholder guarantees. And on top of that, the UK Government bought shares—over 40 per cent of the shares—in HBOS and Lloyds TSB to recapitalise the bank and so rescue it from total collapse.
“On top of that, as the National Audit Office has reported, even when those shares were sold back, brokered by Morgan Stanley, it was at a catastrophic loss to the public purse of between £3 billion and £6 billion. “
For the Scottish Government, The Cabinet Secretary for Wellbeing Economy, Fair Work and Energy, Neil Gray, assured Rhoda Grant that the Scottish Government shares her concerns and that it ” is acutely aware of the frustration and concerns that are felt by many about the overall decline in in-person banking services across Scotland, which have now been exacerbated by the Bank of Scotland’s recent decision to withdraw its mobile banking branch services”
He reminded the MSPs that it continued a trend of closures ” Since 2015, more than 60 per cent of Scottish bank branches have closed and, since 2018, more than 20 per cent of Scottish ATMs have closed. “
Neil Gray is to meet with the the Financial Conduct Authority’s chief executive, Nikhil Rathi, next week to discuss the issue. He also met with Lloyds Banking Group in November to discuss a range of topics, including branch closures. The Scottish Government is now working to set up a cross-party round table with the sector and already have agreement from Scottish Financial Enterprise, Lloyds Banking Group and the FCA to convene that.
Speaking after the debate Rhoda Grant MSP said:
“I thank MSPs for contributing to this important debate and the consensus was not only moving but I hope its influential to the banks in rethinking this reckless abandonment of communities.
“Times are changing and the way we access our banking is changing however, its vital that protections are in place to ensure that people can always access cash and access services in person. This axe will disproportionately affect the elderly, disabled and digitally excluded.
“I urge Bank of Scotland to rethink their decision and to re-evaluate how they are serving their customers”.
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