Two RBS branches survive after Johnston Carmichael review recommends eight closures

Royal Bank of Scotland has today said it will be keeping open only two of the 10 Scottish branches that have been the subject of an independent review of proposed closures carried out by accountancy firm Johnston Carmichael.

The outcome of the review means outlets at Biggar and Barra have been given a reprieve but those at Beauly, Comrie, Douglas, Gretna, Inveraray, Kyle, Melrose and Tongue will all close their doors forever.

Royal Bank of Scotland announced in December 2017 that it would close a number of branches across the UK. In June 2018, it appointed Johnston Carmichael to conduct an independent review of ten of the bank’s Scottish branches which had been earmarked for closure. These branches were selected for review because they were almost all the last branch in town and more than nine miles from the nearest alternative Royal Bank of Scotland branch.

Johnston Carmichael was asked to consider whether each of those 10 branches should remain open or if they should close as planned. The accountancy firm said significant number of different factors were considered in the review, including availability of alternative banking services to each community.

The JC review team said it received more than 1000 representations and spoke to a significant number of branch customers, bank staff, elected representatives, and groups representing a range of interests including those customers with disabilities and considered most vulnerable.

Today the report recommends that in most cases where a branch has been recommended for closure, Johnston Carmichael has suggested a number of important additional measures which could be taken by Royal Bank to enhance the quality and accessibility of alternative banking facilities.

Sandy Manson, chief executive of Johnston Carmichael, said: “We understand there will be considerable disappointment in those communities where we have recommended that a branch should close. However, in most cases where we have recommended that a branch close, we have also suggested additional steps which we believe the bank should take to enhance the quality and accessibility of the alternative banking facilities available. After careful consideration, Castlebay on Barra and Biggar are two branches that we have recommended should remain open due to the number of different reasons as set out in our report. One of the most important factors we considered in our review was the suitability of accessible alternatives to the services currently provided by the local branch. Each branch had its own unique set of circumstances and this meant that we had to carefully and sensitively consider each branch on a case-by-case basis.

“Our main focus throughout this review was to determine the likely impact of a particular branch closure on the local community affected. That is why we spent a great deal of time consulting a wide range of interested parties. In particular we wanted to understand the potential impact of a branch closure on the vulnerable groups in the community.

“We recognise the importance of local banking services being available to these communities, and we have therefore carefully set out our rationale for reaching each recommendation on a branch-by-branch basis.”

Simon Watson, managing director of Personal Banking at Royal Bank of Scotland, said: “We would like to thank Johnston Carmichael for their review of 10 Royal Bank branches in Scotland that were due to close. These branches were selected because, unlike the other branches that were closed, they were nearly all the last bank in town and more than nine miles to the nearest alternative Royal Bank branch. We accept Johnston Carmichael’s recommendations in full.

“Johnston Carmichael has judged that there are exceptional circumstances in Biggar and Barra and has recommended that these branches remain open – so they will. We also note the further recommendations for enhancements that can be made in six of the branch locations and can confirm we will be accepting these recommendations in full.

“The report highlights the difficult nature of branch closure decisions. We know branches are important to many communities, but equally we know that fewer and fewer people are using them as more people bank online. In every case of a branch closing we are committed to providing the best possible range of banking alternatives, including mobile branches, banking in the local post office, community bankers and remote services such as telephone banking.

“With today’s report, we are able to say for the first time with certainty that there will be no further reviews of our branch network in the immediate future – until at least 2020.”

Sandy Manson added: “It was critically important for this review to be objective, balanced and an accurate reflection of the range of banking services both required and available in each of these communities. This included a thorough appraisal of alternative banking services available to each community in order to properly understand the likely impact to customers should a branch close.

“We work in many rural communities across Scotland so we are acutely aware of the importance of the issues at stake in this review. Our team has been thorough and diligent in reviewing the merits of keeping a branch open and the likely impact of closing a branch. We used a comprehensive set of criteria in our assessment of each branch before reaching our conclusions.”