Banks are 'core' to the health of communities, report finds

CLOSURE-threatened Ross-shire banks are of "core" importance to their local communities, and their loss would undermine efforts to boost rural economies – a major new report has warned.

The study, which was commissioned by Highlands and Islands Enterprise (HIE) in response to a spate of bank closures, warned that "cash remains fundamental to the viability of small retail businesses" in rural areas.

And it highlighted the "disconnect between local bank closures and efforts to strengthen and grow local economies", warning that tourism could be particularly badly affected.

HIE’s new study has now called for action to protect communities long enough to enable a "sustainable transition" to digital technology.

Key to this would be greater investment in broadband, a need to secure longer Post Office contracts to ensure banking access remains available, and the possible use of community buildings and council service points to provide "part-time over the counter banking".

It also suggested that banks be required to carry out economic impact assessments in communities affected by proposed closures.

The publication of the report comes amid concern over plans to close a number of Highland bank branches – with Royal Bank of Scotland sites in Kyle of Lochalsh and Beauly remaining at high risk. They were both originally earmarked for closure, but were later given temporary reprieves to see if customer numbers increase.

The new report also warned that while "online banking, Post Office banking and mobile bank vans go some way to providing alternatives", there were concerns over cyber security, "the fragile nature of Post Office contracts", and accessibility of mobile banks.

Zoe Laird, HIE’s regional head of communities infrastructure, said: "Along with the findings of the Scottish Parliament Enquiry into bank closures this [study] will inform how public sector agencies and service providers respond."

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