Scotland loses third of local bank branches in eight years

More than a third of bank and building society branches in Scotland have closed in the last eight years, new research has warned.

An investigation by the consumer group Which? has revealed that the total number of local branches in Scotland has fallen from 1,625 to 1,015 since 2010.

The constituency of Edinburgh South West was hardest hit with 135 closures, cutting the network to just 30 remaining branches in 2018.

This is followed by Glasgow Central, which lost 70, Edinburgh North & Leith, 65 and Edinburgh East, 45.

Meanwhile, Angus, Dundee West, Falkirk and Paisley & Renfrewshire North all lost 15 branches.

The losses have been compounded by a sharp rise in the rate of cashpoint closures throughout the UK last year, which saw 290 ATMs close in Scotland.

The majority of these machines (204) were free-to-use cashpoints that give people access to their cash without having to pay a hefty fee for each withdrawal.

Concerned by the double blow of cashpoint and bank closures across Scotland, Which? has called on the UK government to give a single regulator a duty to protect access to cash and ensure no-one is left behind by these rapid changes to the payments landscape.

This intervention is badly-needed in rural areas, where people may face longer journeys to access cash and broadband speeds are gradually improving from a low level.

But it is equally necessary in urban areas, where cash is vital as a back-up when card and cashless payments collapse.

Which? recently revealed that UK banks were hit by 302 IT shutdowns in the last nine months of 2018 – that’s more than one major IT or security failure every day that prevents customers from making payments.

While digital payments are rising, cash is still a necessity for more than 25 million people across the UK.

A previous Which? survey found that three-quarters of people in Scotland (75%) use cash frequently.

‘These ongoing closures could have a huge impact on communities across Scotland, stripping millions of people reliant on cash of their ability to go about their daily lives,’ said Which? head of money, Gareth Shaw.

‘Cash is also a vital backup when digital systems fail – so the UK government must appoint a regulator to oversee these changes and ensure no-one is shut out from paying for local goods and services.’