HSBC decision to shut Inverness bank branch will cause difficulties for older customers, charity warns
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News that HSBC is to shut its Inverness branch this autumn – leaving the "high street" bank without any permanent branches north of Aberdeen – has been slammed as a short-sighted decision which will particularly impact on older Highlanders.
The Inverness branch is one of 69 which HSBC announced will close, affecting some 400 staff across the UK.
HSBC say the move is a response to the continuing trend towards online and remote banking, which has been accelerated by the pandemic.
Less than half HSBC customers now actively use its branch network, with the average footfall declining over 50 per cent since 2017, faster than any point in the last decade.
Jackie Uhi, head of HSBC UK’s branch network, said: “The way people bank is changing. Our branches continue to support people with their more complex banking needs, but the way we can do this has also evolved, with the addition of banking hubs, community pop ups and continued use of the Post Office network. Rather than a one-size fits all branch approach, it’s an approach built around the way different customers are choosing to bank in different areas.”
The Inverness branch at 50-52 High Street, has been set for closure on September 27. The Perth branch is also earmarked to shut in July.
HSBC says it will be introducing a number of services to compensate, including free tablet devices for vulnerable customers, online and in branch digital education sessions and it will be contributing to shared banking hubs, where UK banks have agreed to share services to ensure communities have fair access to cash.
However, Brian Sloan, chief executive of Age Scotland, described HSBC's decision to close the Inverness branch as extremely disappointing.
"The move will force customers in Inverness to make a 200 mile round trip to the nearest branch in Aberdeen, and customers who live in Wick or Thurso are looking at a five hour journey just to manage their own money face to face with bank staff," he warned.
“We know that bank branch closures penalise older and disabled customers the most. A third of people over 50 don’t use a smartphone and 500,000 over 60s don’t have access to the internet. In addition, many older people simply prefer not to use online banking. Across the country hundreds of thousands of older people are being left disadvantaged by the continued retreat of banks from the high street.
“HSBC’s decision will compromise the financial independence of many of its older customers in the Highlands. It is a short sighted move which goes beyond just access to cash as branches play an important role in supporting people’s financial wellbeing and reducing the risk of scams.”
Federation of Small Businesses (FSB) Highlands and Islands development manager David Richardson was also concerned about the impact on business and the knock-on impact on the city centre.
He commented: “Bank branch closures have been a running sore in Scotland’s high streets for years now, and the September closure of HSBC’s Inverness branch will provide one more reason for people not to visit the city centre.
"If they don’t visit they can’t spend money in businesses while there, to Inverness’s detriment. The only winners are out-of-town and online retailers. It’s very sad, but these points have been raised for years and the closures keep coming”
David Ritter, financial services strategist at information technology company CI&T, said that banks were still crucial for customers seeking trustworthy, in-person financial advice.
“The shift to online and mobile banking is undeniable, but the pandemic and surging inflation have created new financial challenges for consumers and small businesses – many of which require a human touch to address," he said.
“To be customer-friendly and successful, multi-channel is a must. If staffing difficulties or branch closures impact face-to-face services, banks must offer phone support, online guidance, video calls, and live chats to help customers settle their requests and book an in-person follow-up. This level of interaction is key for personalised approaches to show consumers their complete financial picture and provide new, focused services. ”
