Santander branches in Turriff and Peterhead set to shut
Santander has confirmed its north-east banks in Turriff and Peterhead are to close.
The bank has announced 95 of its existing 444 branches in the UK will be shut.
There is no date for the Turriff closure while the Peterhead branch will be closed on Monday, June 16.
Santander said it has seen a rapid movement of customers choosing to do their banking digitally, with a 63 per cent increase in digital transactions since 2019, while financial transactions completed in branches reduced by 61 per cent in the same period.
A spokesperson for Santander UK said: “As customer behaviour changes, we are ensuring that our branches remain fit for the future.
“As a business, we must move with customers and balance our investment across all the places where we interact with customers, to deliver the very best for them now and in the future.
“Closing a branch is always a very difficult decision and we spend a great deal of time assessing where and when we do this and how to minimise the impact it may have on our customers.
“However, we believe that the introduction of our new community bankers and the exciting plans we have for our remaining network of 349 branches and Work Cafés, alongside the rapid and innovative improvements to our award-winning mobile banking app, will provide the right balance of digital banking and human interaction when required.”
The bank outlined approximately 750 staff across the UK would be placed at risk of redundancy if the proposals proceed after consultation with the unions has been completed.
Aberdeenshire East MSP Gillian Martin said: “This decision is another devastating blow to our rural communities where more and more banks are shutting up shop and leaving.
“I am concerned about the impact on both our older population who may not have access to online banking and for businesses who need local banking branches to manage their cash flow.
“Furthermore, not everyone has easy access to transport to travel to other banking branches elsewhere.
“I am pleased that Santander has acknowledged the need for a banking hub of some form and I will be writing to them for further information on the details of this so I can update constituents as and when is possible.”
Turriff and District councillor Alastair Forsyth, who worked in financial services for almost two decades, said he was disappointed but not surprised by the decision.
He said: "Having good access to banking facilities is very important for the economy of the town and surrounding district.
“We have many good investment and employment opportunities in the area, and I am keen to help Turriff to be a welcoming and prosperous destination to visitors and businesses.
“When I was elected in 2017 Turriff had five banks and sadly we are faced with the prospect of no singular facility at all.”
Gordon and Buchan MP Harriet Cross said: "The closure of Turriff’s last remaining bank is a catastrophic blow to the community.
"Banking services are a lifeline to rural residents who use cash, particularly the elderly and businesses in industries such as farming which the area is renowned for.
"Santander customers in Turriff will now be forced into making a 50-mile round trip to Fraserburgh which is completely unacceptable.
"As we have seen recently nearby in Ellon and New Deer, banks are failing rural residents, with apparent disregard for the devastating consequences left behind.
"I have now requested a meeting with Santander to find out what mitigations will be put in place for both personal and business customers who are most dependent on the use of this branch.
"In addition, I am actively working to help preserve some of these services by advocating for the establishment of high street banking hubs, and I will be calling for this to be done in Turriff."
LINK, the UK’s cash access and ATM network, has announced a recommendation for a new banking hub in the town.
Following the announcement of the closure of the final bank branch, LINK has confirmed that the town will benefit from a new banking hub as part of a wider commitment to protect access to cash.
Banking hubs are a shared space, similar to a traditional bank branch, but available to everyone.
When opened, the hub will consist of a counter service operated by Post Office employees, where customers of any bank can withdraw and deposit cash, make bill payments and carry out regular banking transactions.
In addition, there will be private spaces where customers can speak to community bankers from their own bank for more complicated matters that require specialist knowledge or privacy.
The banks will be working on a rotating basis, so there will be staff from different banks available on different days.
To date, LINK has recommended 224 banking hubs, and 19 banking hubs have been announced in the latest round.
Turriff is the third hub to be recommended in Aberdeenshire by LINK following Banff and Huntly.
The banking hub will now be delivered by Cash Access UK. Over the next few weeks, it will begin to engage with the local community and will start to look for potential sites. There are currently 139 hubs open across the UK.
Dr Chris Ashton, chief commercial officer at LINK said: “While more people are choosing to bank and pay for things digitally, we know that many people still rely on and choose to use cash and face-to-face banking.
“That’s why we’re delighted to recommend the new hub in Turriff. There are almost 150 hubs open across the country and when it opens, the Turriff banking hub will be vital for the local community and high street.”
Meanwhile, Santander’s Peterhead branch at 6 Marischal Street will clsoe on Monday, June 16.
Following the announcement, LINK conducted a review of banking services in the area.
It concluded that there is no significant gap in cash access services and, as a result, has not recommended the introduction of a banking hub or additional services.
Banffshire and Buchan Coast MSP Karen Adam said: “The closure of Santander in Peterhead is disappointing and raises concerns for local residents and businesses who rely on in-person banking services.
“While Santander has stated this is part of a UK-wide restructuring, it remains important that customers are supported in accessing alternative banking options.
“I will be engaging with Santander to seek further clarity on what measures will be put in place to assist affected customers and businesses.
“Additionally, I will continue discussions with LINK and other stakeholders to ensure that any future banking needs in the area are properly assessed and addressed.”
