FSB calls on RBS to backtrack on branch closures as profits surge

Responding to the announcement that Royal Bank of Scotland (RBS)’s profits soared to £1.2 billion in Q1 2018, Federation of Small Businesses (FSB) National Chairman Mike Cherry, said:

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“With RBS’ finances improving, it’s disappointing to see the majority taxpayer-owned bank continuing to reduce in-person support for the public. Local businesses rely on local bank branches, as do their customers.

“The 180 branch closures that RBS has planned will hurt high streets and particularly affect vulnerable consumers. When a bank branch closes it makes accessing cash that much harder. Less cash flow in a local economy means less growth.

“The services which RBS is offering businesses facing branch closures are falling way short of the mark. While an expansion of mobile bank van services in Scotland was promised, it has emerged that many communities are actually facing shorter visits from these lifeline vehicles. This leads to business owners travelling for hours to deposit cash, when they should be using that time to grow their firms.

“More than 90 per cent of our members bank online. There are times when we as small business owners have to visit branches though, not least when taking out a float at the start of the day and depositing cash after closing to protect ourselves from theft. Equally, as we’ve seen in recent days, there are times when online services are shut off and you need to meet with a real person.

“RBS should return the support it’s received from the public by meeting business and consumer demand for a properly resourced branch network.”

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Comments: (1)

Bob Lyddon

Bob Lyddon Consultant at Lyddon Consulting Services

Totally agree. Now the Post Office won't collect cash at merchant premises, cash deposit has become a Top 4 issue in UK payments, alongside access to free cash withdrawals because of branch closures (the other two being high deductions from merchants' card proceeds and Authorised Push Payment fraud). It's a pity that only one of these falls within the self-circumscribed scope of the new power complex of Payment Systems Regulator, Payment Strategy Forum, New Payment System Operator and New Payments Architecture, and even then not in a good way - their plan is to settle all payments via Authorised Push Payments, thus promising a fat payday for the scammers.

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