Dunbar Bank of Scotland closure: Call for banking hubs in East Lothian

May 16, 2023

A CALL has been made for banking hubs after the announcement of yet another bank closure in East Lothian.

Dunbar will become the latest town to be left without a bank – following in the footsteps of Tranent and Prestonpans – when the Bank of Scotland closes next year.

The banking giant has already conducted "an in-depth review" and plans to shut the High Street branch on May 21 next year.

That comes after the Royal Bank of Scotland (RBS) moved out of the town in 2018 and TSB closed two years later.

The latest announcement also comes just weeks after it was confirmed that Tranent would be left without a bank when its RBS shuts this summer.

Following the Tranent and Dunbar closures, Haddington (three banks), Musselburgh (four) and North Berwick (one) will be the only communities in the county with banks.

READ MORE: Tranent: Royal Bank of Scotland confirms plan to close branch

Paul McLennan, MSP for East Lothian, is calling for people to "demonstrate that there is a desire for banking hubs" and has launched a survey.

He said: "I’ve had a number of meetings with banks nationally and locally in recent weeks to address the issues raised by the closures in Dunbar and Tranent.

"The banks announced these closures with next to no community consultation and – despite putting in place a number of mitigations such as community bankers – the proposals fall woefully short of the face-to-face banking services expected by customers, especially for the major financial decisions such as loans, mortgages and personal finance decisions.

"This will disproportionately affect those who use cash regularly: cash businesses and those who are uncomfortable with digital-first banking.

"While it would be my preference to see these closures stopped, and I have signed a joint letter to the Bank of Scotland asking this to happen, it is clear that unless a major turnaround from the banks take place, that is unlikely.

"Banking hubs are the ideal solution to this situation.

"They allow for regular access to everyday banking services in a face-to-face environment, and in a local building.

"The major banks then have an allotted period of time each week to offer private appointments to customers.

"The model has worked very well in other towns and I will be sharing case studies in the coming days."

And Councillor Norman Hampshire, East Lothian Council leader, suggested that a banking hub could be a possibility in East Lothian following discussions with Bank of Scotland.

He said: "In April, councillors Dugdale and McGinn submitted a motion to full council requesting myself and chief executive Monica Patterson to contact RBS to express concern at their plans to close their Tranent branch and to explore other options.

"Unfortunately, their response was rather disappointing and they confirmed their plans to close the branch.

"I contacted Bank of Scotland after they announced their proposal to close their Dunbar branch and leave another East Lothian town without a branch.

"Their response has been more positive and they are open to the possibility of a reduced presence within suitable premises in the community which may follow a ‘shared banking hub’ model that has been introduced in other parts of the country.

"Such a facility will also help maintain usage of our town centres, which the council fully supports and encourages.

"East Lothian has a growing population, with banking facilities required by many in our communities both for personal and business use.

"The council is keen for banks to retain a presence in each of our main towns and we will continue to engage with them to seek possible solutions."

In the last decade, 11 bank branches have closed their doors across East Lothian.

That number will become a dozen next month when Tranent's RBS closes.

Figures provided by Bank of Scotland show that the number of transactions in the Dunbar branch in January dropped by 38 per cent for personal customers and 32 per cent for business customers compared to 2018.

The closure means that the nearest Bank of Scotland branches for customers would be in Haddington and North Berwick.

Mr McLennan, who lives in the town, has vowed to "continue to fight for banking services in Dunbar".

He said: "The bank confirmed that they are putting in place a number of measures: a community banker will be put in place following the closure, and all of their regular customers will be contacted over the coming year to make them aware of alternative resources.

"I expressed my disappointment and frustration over this decision, and made it clear that Dunbar is a growing town, and that this closure will badly affect the town.

"In addition, the proposed mitigations clearly fall short of the full banking service that individuals and businesses have come to expect from their bank.

"Nonetheless, I welcome the engagement from the bank.

"If any customers of the Bank of Scotland have any specific concerns about the closure, please write to me directly as the bank have confirmed they would be willing to work with my office to address issues individually for all current customers who will be affected."

South Scotland MSPs Craig Hoy and Martin Whitfield were also unhappy with the decision.

Mr Hoy, alongside Councillor Donna Collins, who represents the town on East Lothian Council, has launched a petition against the closure.

He said: "It is deeply regrettable that the Bank of Scotland are looking to close the last remaining branch in Dunbar."

Meanwhile, Mr Whitfield described the move as "yet another bank blow" for East Lothian.

He said: "My sympathy is with the staff and customers who will be affected by this latest closure.

"Once again, this will make it harder for many business and individual customers to conduct their banking and place additional pressure on local post offices.

"It is clear that the steady withdrawal of local banking services is going to continue and we need to explore alternatives to the traditional high street branches to keep banking facilities in communities."

Council leader Mr Hampshire lives in Dunbar and was keen for a meeting to be arranged between the council and the Bank of Scotland.

However, he told the Courier he did not "hold out much hope that we can reverse this decision".

He accused the banking sector of putting profits before customers and said: "It is extremely disappointing.

"The banks do not seem to care about their customers.

"They need at least for one bank in the community as a necessity."

Ward colleague Mrs Collins, who lives near Innerwick, said that the closure would not only negatively impact residents and businesses in the town but also those in the surrounding villages.

She said: "Banking services have been severely diminished in my ward with the closure of RBS branches in East Linton and Dunbar, followed by TSB and now the Bank of Scotland.

"Residents have already been in contact with me to express their frustration and upset at the planned closure, so I am keen to engage with banking groups to retain services in the community."

Councillor Lyn Jardine, who also represents Dunbar and East Linton, felt it was "wishful thinking" that there could be a change of heart over the next 12 months.

She said: "I recognise that people are increasingly moving to online banking but there are still some services that are absolutely required in person in a bank somewhere.

"Cash is something that is quite well covered but other services, such as discussions about mortgages, you can do some of that online but sometimes it is best to have an in-person conversation.

"It is how those personalised bits are going to be covered when you have got greater distances between our banks."

Pippa Swan, chairwoman of Dunbar Community Council, was unhappy with the decision.

She said: "I am absolutely shocked and very, very disappointed.

"I think the impact it will have on so many residents, particularly older people, and local businesses can only be bad. I think it is a great loss to the town.

"It does not surprise me the bank has made this decision. All of us have become increasingly bemused about how banks make their decisions and treat their customers.

"This is a further example of the complete disregard of people who want to do business with them."

Kenny Miller, chairman of North Berwick Community Council, plans to write to the Bank of Scotland about what the future holds for the North Berwick branch, the last bank branch in the town.

He said: "I have been watching these closures with alarm.

"I have not heard any suggestion that the North Berwick branch of the Bank of Scotland is under threat of closure.

"So many residents of North Berwick and the surrounding towns rely on that bank, the alternative being to travel to Haddington or Musselburgh.

"At this point, we can only hope that our bank stays open, and I will write to Bank of Scotland expressing our concerns."

Mike Falconer, chair of Tranent and Elphinstone Community Council, said: "The Dunbar closure has been handled almost exactly the same as the Tranent closure.

"RBS say they are sorry to those who may require face-to-face banking but they have not offered any solutions.

"Like Tranent, it will mean another empty building in Dunbar.

"I am on board with the support from MSPs, and all the politicians need to show a united front in opposition to the closure of banks.

"We are not going to be able to change the decision made. But we need to be provided with things like mobile banking or a banking hub."

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