Report suggests solutions to rural banking crisis
PART-TIME banking facilities in community-run buildings or council service points could help ease the impact of bank closures in Ross-shire and the wider Highlands, according to a major new report.
The study, which was commissioned by Highlands and Islands Enterprise (HIE) in response to a spate of bank closures, also warned that cash remains fundamental to the viability of small retail businesses in rural areas.
And it highlighted the growing "disconnect between local bank closures and efforts to strengthen and grow local economies", predicting that tourism could be particularly badly hit.
It has called for banks to carry out economic impact assessments in villages and towns affected by proposed closures, arguing that they are of "core" importance to their local communities.
And HIE’s new study has urged 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".
The publication of the report comes amid concerns 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 increased.
It is part of a wider trend of closures, which has seen 48 branches either close their doors or be put at risk in the Highlands and Islands over the last three years. Some of these are the last banks operating in their communities.
And the new report has 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 the accessibility of mobile banks.
Zoe Laird, HIE’s regional head of communities infrastructure, said: "We would like to thank all those who took part in this extremely useful study.
"Their feedback and input has helped create a much greater understanding of the issues around rural banking services.
"Along with the findings of the Scottish Parliament inquiry into bank closures, this will inform how public sector agencies and service providers respond.
"We are sharing the report with all our partners, including the Scottish government, public agencies and councils across Scotland, and with providers such as banks, credit unions and the Post Office.
"Through collaborations such as community planning partnerships, we will all be well-placed to develop an effective joint response that will enable the continued support for economic and community growth in rural areas."
