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Money on wheels: Banking gets seriously mobile | Money on wheels: Banking gets seriously mobile |
(about 14 hours later) | |
For the UK's urban-dwelling, short-of-time majority, mobile banking is something that usually comes in the shape of a smartphone app. | For the UK's urban-dwelling, short-of-time majority, mobile banking is something that usually comes in the shape of a smartphone app. |
But ever since crofters on the Isle of Lewis first encountered it in 1946, mobile banking has also had another manifestation, in the form of a bank on wheels. | But ever since crofters on the Isle of Lewis first encountered it in 1946, mobile banking has also had another manifestation, in the form of a bank on wheels. |
At that time the crofters found it hard to reach the main town, Stornoway, as they were too busy weaving tweed. | At that time the crofters found it hard to reach the main town, Stornoway, as they were too busy weaving tweed. |
Instead the bank would travel to them. | Instead the bank would travel to them. |
But nearly 70 years on, as the popularity - and the affordability - of High Street branches dwindles, mobile banks could be coming into their own. | But nearly 70 years on, as the popularity - and the affordability - of High Street branches dwindles, mobile banks could be coming into their own. |
So when Royal Bank of Scotland (RBS) announced the closure of 44 branches earlier this month, it also announced it was buying five new mobile branches. | So when Royal Bank of Scotland (RBS) announced the closure of 44 branches earlier this month, it also announced it was buying five new mobile branches. |
It is adding three new routes for the vans, two in Scotland and one in Wales. | It is adding three new routes for the vans, two in Scotland and one in Wales. |
Its rival, Bank of Scotland (BoS) is also updating its fleet, with two new vehicles. | Its rival, Bank of Scotland (BoS) is also updating its fleet, with two new vehicles. |
So do mobile banks provide an additional level of customer service, or are they just the excuse that banks need to close further branches? | So do mobile banks provide an additional level of customer service, or are they just the excuse that banks need to close further branches? |
'Proper branch' | 'Proper branch' |
For two hours every Thursday, an RBS mobile branch pulls into the market square in the town of Moffat in Dumfries and Galloway. | |
At the wheel is Jim Russell, who has been driving the van for 14 years. | At the wheel is Jim Russell, who has been driving the van for 14 years. |
He and his colleague, Audrey Murphy, provide their regulars with a special level of service. | He and his colleague, Audrey Murphy, provide their regulars with a special level of service. |
"If customers are ill, and cannot come down, if they're not far off route, we'll drive to their houses," says Jim. | "If customers are ill, and cannot come down, if they're not far off route, we'll drive to their houses," says Jim. |
If regulars do not turn up, they may get a text, to check if they are OK. The older ones might even get the snow swept off their doorsteps. | If regulars do not turn up, they may get a text, to check if they are OK. The older ones might even get the snow swept off their doorsteps. |
Local customers certainly appreciate the service, although they bemoan the lack of a proper bank. | Local customers certainly appreciate the service, although they bemoan the lack of a proper bank. |
"I'd prefer it if there was a branch in Moffat," says local butcher Scott Wallace. | "I'd prefer it if there was a branch in Moffat," says local butcher Scott Wallace. |
"But I like it. It's a lot easier than going to Lockerbie, which is 16 miles away," he says. | "But I like it. It's a lot easier than going to Lockerbie, which is 16 miles away," he says. |
Anne Murray would otherwise have to travel 39 miles to her branch in Selkirk. | Anne Murray would otherwise have to travel 39 miles to her branch in Selkirk. |
"Yes, I would prefer a proper branch, but it's not going to happen, is it?" she says. | "Yes, I would prefer a proper branch, but it's not going to happen, is it?" she says. |
'Red herring' | 'Red herring' |
Among the 44 branch closures recently announced by RBS, 14 were the last bank in town. | Among the 44 branch closures recently announced by RBS, 14 were the last bank in town. |
In such cases it promised its customers it would either remain open, or else provide alternative banking facilities. | In such cases it promised its customers it would either remain open, or else provide alternative banking facilities. |
As a result some of the "last bank in town" communities will now be served by new mobile branches. | As a result some of the "last bank in town" communities will now be served by new mobile branches. |
A van based in Duns will cover Chirnside and Greenlaw, in the Borders, for example, where customers would otherwise have been abandoned. | A van based in Duns will cover Chirnside and Greenlaw, in the Borders, for example, where customers would otherwise have been abandoned. |
But critics believe vans can never replace real branches. | But critics believe vans can never replace real branches. |
"We were appalled at the RBS decision," says Derek French, of the Campaign for Community Banking. | "We were appalled at the RBS decision," says Derek French, of the Campaign for Community Banking. |
"The mobile thing is a red herring. It's better than nothing if you are in a remote community, but they use it as a publicity thing," he says. | "The mobile thing is a red herring. It's better than nothing if you are in a remote community, but they use it as a publicity thing," he says. |
Mr French is concerned the introduction of more vans will go hand-in-hand with further branch closures. | Mr French is concerned the introduction of more vans will go hand-in-hand with further branch closures. |
Community service | Community service |
But RBS, like other banks, insists that branch closure decisions are all taken on a case-by-case basis, according to how many people use them. | But RBS, like other banks, insists that branch closure decisions are all taken on a case-by-case basis, according to how many people use them. |
Only then does it consider alternative facilities, such as a mobile branch. | Only then does it consider alternative facilities, such as a mobile branch. |
Nevertheless it says that branch transactions have fallen by 30% since 2010. | Nevertheless it says that branch transactions have fallen by 30% since 2010. |
And it says the new mobile vans - in which it is investing £600,000- will provide a more personalised service to its customers. | And it says the new mobile vans - in which it is investing £600,000- will provide a more personalised service to its customers. |
"It's about being where the customers want us," says Jane Paterson, who is in charge of rolling out the new fleet of RBS mobile branches. | "It's about being where the customers want us," says Jane Paterson, who is in charge of rolling out the new fleet of RBS mobile branches. |
The existing RBS and NatWest vans already drive more than 7,000 miles a week, and reach 357 different communities. | The existing RBS and NatWest vans already drive more than 7,000 miles a week, and reach 357 different communities. |
'Two customers' | 'Two customers' |
The new vans will provide a much more practical service than the existing fleet. Because they are equipped with satellite dishes, they can connect directly with the network, and a customer's account. | The new vans will provide a much more practical service than the existing fleet. Because they are equipped with satellite dishes, they can connect directly with the network, and a customer's account. |
In the existing vans - as crewed by Jim Russell and Audrey Murphy- staff have to make a note of each transaction, and then update the accounts when they get back to base. | In the existing vans - as crewed by Jim Russell and Audrey Murphy- staff have to make a note of each transaction, and then update the accounts when they get back to base. |
Or they have to make a phone call to the customer's branch, to check their balance. | Or they have to make a phone call to the customer's branch, to check their balance. |
But Jim and Audrey have plenty of time for paperwork, as clients can be a little thin on the ground. | But Jim and Audrey have plenty of time for paperwork, as clients can be a little thin on the ground. |
Indeed some mobile vans have fewer customers than the branches they supposedly replace. | Indeed some mobile vans have fewer customers than the branches they supposedly replace. |
"In Lamington, our next stop, we have just two customers," says Mr Russell. | "In Lamington, our next stop, we have just two customers," says Mr Russell. |
"So we park between their doors." | "So we park between their doors." |
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