Mid Argyll's last bank branch to close will have huge impact on small businesses

“We still use the bank for cash service, especially for getting change and occasionally depositing cash, so losing the local branch is a real inconvenience.

“Having to travel to Oban adds time and cost, and it’s definitely a loss for small businesses like ours and the wider community,” owners Hafiza Yasmeen and Ghulam Murtaza said.

And down on Colchester Square another long-established business will be facing similar challenges, as The Square Peg owner Jilly Wilson explained.

“It’s the war on cash,” she said. “It’s mental that banks can get away with leaving vast swathes of the country without a service.

“Bank branch closures in town have already led to spiralling business cash-handling fees at Bank of Scotland - now £1.50 per £100 cash banked, and £2.50 per £100 to exchange notes for coins. 

“At The Square Peg, 20-25 per cent of customer payments are still made by cash. 

“This is a significant number and quickly becomes a significant amount of cash that I am not insured to keep in the building, and therefore must bank every few days.

“The more profound effect is on my customers who either prefer to, or more importantly can only, use cash and that is who will be most impacted by the closure which certainly leaves a deficiency in access to cash services for everyone in Mid Argyll. 

“Bank of Scotland should be required to demonstrate there is reasonable alternative access to cash-handling facilities for all its current customers.”

Ms Wilson’s point about the banking group providing evidence of the impact the closure will have on its customers has been raised directly with the company by Argyll and Bute Provost and councillor for Mid Argyll Dougie Philand.

Councillor Philand copied in the Advertiser to an email he sent on Thursday February 12 to the Bank of Scotland’s parent company Lloyds Banking Group.

“Given that Lloyds is worth £61.96 billion, can you please outline why a lifeline service in a fragile rural area is considered appropriate to close,” Councillor Philand asked in his email.

“When did you consult with our MP and MSP and, importantly, who else did you consult with locally to make this decision?

“Given the geographic situation of Lochgilphead could you please forward the information and assessment which supports residents having to travel to Oban 37 miles away as a suitable alternative for customers to use?

“It is sad that we, as an area who have been loyal customers, are now simply being discarded because we are small and not making enough profits to add to the colossal amount of money that your company is currently worth.”

The imbalance between the wealth of the bank and its customers is, perhaps, most stark in regard to community-based non-profit organisations that require banking services.

“The closure will be an issue for the thrift shop and our five places of worship,” a spokesperson for The Church of Scotland in North Kintyre told the Advertiser.

“Sadly, I don’t think we will be able to change their minds. They are pushing us to bank online as much as possible.”

This strong push away from in-person banking disproportionately impacts rural communities, according to councillor for Kintyre and the Islands Alastair Redman.

“The continued closure of local bank branches across rural and island communities is not just inconvenient — it is deeply damaging. These decisions are being taken in distant boardrooms by people who will never experience the consequences for themselves.

“For many residents, particularly older people, small businesses, and those without reliable internet access, a physical bank branch is not a luxury. It is an essential service.”