Scottish communities are being forced to become cash free against their will because of sweeping bank closures, MPs have warned.
Westminster’s Scottish Affairs Committee made the claim as it urged the UK Government to demand banks guarantee that they will not leave any towns with no branches.
In a new report, the MPs recommend introducing legislation if banks refuse to provide such a guarantee. The committee has been holding an inquiry into access to financial services in Scotland and has previously issued warnings over the number of branch closures.
Earlier this year, a study revealed a third of banks in Scotland have closed since 2010 – raising fresh concerns about people’s access to cash.
Consumer group Which? found 610 banks and building societies closed between 2010 and 2018, with the total number dropping from 1,625 to 1,015.
The MPs have now warned Scotland has suffered proportionally more bank closures than in the rest of the UK – with some towns being left with no branch at all.
Committee chair Pete Wishart MP said: “It is disgraceful that banks think they can abandon Scottish towns with no access to essential financial services.”
Following criticism from the Scottish Affairs Committee last year, Royal Bank of Scotland previously said it is “not an easy decision” to close branches but said they were responding to changes in the way customers banked.
