High Streets Initiative

Latest RBS closures could damage local high street footfall and revenues

Praseeda Nair | 2 May 2018 | 6 years ago

Businesses in rural areas could be most affected by bank branch closures
Britain’s small high street businesses will see revenues and footfall hit from a fresh wave of Royal Bank of Scotland (RBS) branch closures, according to the Federation of Small Businesses (FSB).

This week, RBS added an extra 162 in-store branches across England and Wales to its planned closure list. The bank said 792 jobs would be lost, with staff offered voluntary redundancy.

The latest RBS closures follow a steady loss of in-store bank branches across UK high streets.

In March 2017, RBS announced plans to shut the doors of 158 bank branches throughout the UK, citing the closures as a response to shifts in the way people wanted to interact with their bank.

The following December, the part-taxpayer owned bank confirmed it would axe 62 RBS and 197 NatWest branches a quarter of its entire network. Again, the bank’s chief executive, Ross McEwan pointed to the rise of mobile banking in pushing RBS to an online-first strategy.

The latest announcement arrived shortly after RBS? plans for a new challenger bank, under the Williams & Glyn name, were shelved.

Commenting on the closures, FSB chairman, Mike Cherry, said the failed sale of Williams & Glynn was being used as an excuse to further decimate the UK’s bank branch network.

this fresh round of closures will hurt high streets all over the country at a time when thousands of small firms are already struggling, Cherry added.

when a bank branch goes it means less footfall, less cash in the local economy and less revenue for local small firms as a result.”

__________________________________________________________________________________
Post Bank

 

National Post Bank touted as antidote to branch closures for small firms

The creation of a state-run Post Bank? would improve access to financial services for small UK business owners as high street lenders step away from traditional in-store banking, according to a new report.

__________________________________________________________________________________

With small business owners potentially losing access to banks for cash deposits, Cherry explained that holding excessive amounts at one time could put them at risk.

if small firms can’t easily deposit takings it makes them targets for theft, ” he said.

“Many small business owners have built up relationships with branch personnel that go back years that’s not something that can be replaced by an app.

the 800m that RBS has put up to avoid the sale of Williams & Glyn needs to be placed in the hands of those that will really make a difference. It was frustrating to see the 45m of dedicated funding for free branch access removed from the revised RBS package.

Related Topics

COVID-19: Tier 4 restrictions & advice for retailers planning for 2021
29 December 2020

COVID-19: Tier 4 restrictions & advice for retailers planning for 2021

Read More →
Black Friday 2020: Retailers now use publicly available data to gain advantage
3 December 2020

Black Friday 2020: Retailers now use publicly available data to gain advantage

Read More →
Second lockdown: 5 tips to retain Christmas shoppers
3 November 2020

Second lockdown: 5 tips to retain Christmas shoppers

Read More →
NEWS: Oasis and Warehouse fall into administration during COVID-19
16 April 2020

NEWS: Oasis and Warehouse fall into administration during COVID-19

Read More →
NEWS: Debenhams files for administration for the second time this year
7 April 2020

NEWS: Debenhams files for administration for the second time this year

Read More →
Is COVID-19 taking out the weaker retailers?
1 April 2020

Is COVID-19 taking out the weaker retailers?

Read More →

If you enjoy reading our articles,
why not sign up for our newsletter?

We commit to just delivering high-quality material that is specially crafted for our audience.

Join Our Newsletter