Home   News   Article

New figures reveal growing reliance on post offices as Highland bank branches close


By Alan Hendry

Easier access to your trusted, local news. Subscribe to a digital package and support local news publishing.



Click here to sign up to our free newsletters!
Many post offices are located in convenience stores.
Many post offices are located in convenience stores.

Newly released figures underline how communities and businesses are increasingly relying on post offices to deposit and withdraw cash following a series of bank branch closures in recent years.

In 2021, cash deposits and withdrawals by business and personal customers at Scotland’s 1300 Post Office branches rose to a total of £2.41 billion, up almost 11 per cent per cent compared with 2020.

Ross-shire is among the areas that have been hit hard by bank closures.

The Post Office says communities appreciate the role that its branches play in local economies, "where cash transactions can be critical for small businesses, and where many individuals, and especially more vulnerable members of society, rely on cash".

Post offices can be used by personal and business customers of 30 banks, building societies and credit unions to deposit and withdraw cash, deposit cheques and check balances.

The total number of transactions – deposits and withdrawals – hit 11 million in 2021, compared with 10.7 million in 2020.

The figures coincide with the next Scottish Affairs Committee evidence session at Westminster at which the Post Office’s banking director Martin Kearsley will give evidence. The committee is seeking views on people's experiences of accessing cash.

The consumer group Which? told the committee recently that the number of bank branches in Scotland had fallen by 53 per cent over the past seven years, with 1040 branches having closed.

Post offices can be used by personal and business customers of 30 banks, building societies and credit unions to deposit and withdraw cash, deposit cheques and check balances.
Post offices can be used by personal and business customers of 30 banks, building societies and credit unions to deposit and withdraw cash, deposit cheques and check balances.

Last week the Post Office announced it had secured a new agreement to continue to handle cash deposits and withdrawals across the UK on behalf of the banks, building societies and credit unions for a further three years. The new agreement, known as Banking Framework 3, will run from January 2023 to December 2025.

Mr Kearsley said: “Post offices increasingly provide a lifeline for individuals and small businesses across Scotland, especially amid ongoing bank branch closures. Although many people use cash less, it remains crucial for large numbers of people and local economies.

“When we see customers making withdrawals, we are often seeing people whose budgeting is so tight they need to withdraw cash to the nearest penny. You also have to consider businesses that rely on cash, and just what the impact would be if they had to turn such custom away – they need a convenient and secure place to pay that cash in speedily, without having to close to visit a distant bank branch.

"It can make a critical difference to a local economy.

“The good news is that post offices continue to provide cash services across Scotland.

"What’s more, they very often have longer opening hours as most are located in convenience stores. This also means you can pick up groceries or pay bills at the same time.”

Post Office is also trialling new banking hubs where five major banks take it in turns to provide services on weekdays. Jamie Stone, the MP for Caithness, Sutherland and Easter Ross, has made repeated calls for such hubs to be established in the far north.


Do you want to respond to this article? If so, click here to submit your thoughts and they may be published in print.



This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies - Learn More