The closure of bank branches across the Isle of Wight has prompted the Federation of Small Businesses to speak out about the negative effect it has on footfall, particularly in tourist hotspots.
Earlier this month it was announced that Barclays are to shut their Shanklin branch just 2 years after closing their Freshwater branch. Shanklin has also been hit by the recent closure of Natwest and HSBC, which has also closed in Cowes. Lloyds Bank have closed branches in Bembridge, Cowes and Sandown. In was in 2015 that Natwest also closed branches in Cowes and Freshwater.
Neil Eames, representing the Federation of Small Businesses (FSB) in Hampshire and the Isle of Wight, said:
“At a time of unprecedented uncertainty, the last thing small businesses need is loss of in-person bank branch support. When times are tough, there’s no replacement for help from a known and trusted bank branch contact.
“It is clear that the alternative Post Office services are not up to scratch, with cash and cheque clearing facilities limited and currency exchange services rarely offered. We need to see substantial improvement of the Post Office’s offering if it’s to be considered a viable replacement for bank branches.
“Smaller businesses routinely deal with customers that want to pay in cash. Once a town loses a bank branch it hurts footfall, particularly in tourist hotspots, and means business owners have to spend time travelling out of town to use banking services. Card payment terminals can go some way to mitigating these impacts but still carry multiple transaction costs which firms are forced to absorb.”
