182 year-old Airdrie Savings Bank to close

Airdrie Savings Bank (ASB), the UK’s last remaining independent savings bank, is to close its doors with seventy jobs likely to be lost.

The institution – which can trace its roots back to 1835 - confirmed yesterday it will be ending all business activities and be wound down in the coming months.

ASB, which operates two branches in Lanarkshire and a head office in Airdrie, was backed by Stagecoach founders Sir Brian Souter and Ann Gloag along with a group of senior Scottish business figures as it expanded in 2010.

The bank is understood to have about 10,000 current accounts and 30,000 deposit accounts.

CEO Rod Ashley attributed the closure to a backdrop of several previous branch closures in recent years, a shrinking customer base, declining footfall and an ongoing escalation of operating costs.

He said it was a “difficult decision” to close but insisted it was the right move.

Unite regional officer Wendy Dunsmore said the loss of the bank was a “bitter disappointment”.

The bank will close its branches in Coatbridge and Bellshill on April 28 as part of a phased shutdown of operations, with up to 70 staff likely to lose their jobs.

All current accounts will close on April 28 while the head office will remain open for as long as is needed for customers to transfer their money to an alternative banking provider.

Chairman Jeremy Brettell said: “While we are financially strong, a comprehensive strategic review of all future options concluded that we will not have – as a very small bank – the resources in the years ahead to provide the products and services our customers need in this increasingly digital world.”

Airdrie and Shotts MSP Alex Neil said: “The Airdrie Savings Bank (ASB) has been an institution for 182 years. It has served the people of Lanarkshire well for all that time. After the financial crash of 2008 it was probably for a while one of the few viable banks left in Britain.

“However the consequences of the financial crash have meant that it has become impossible for such a small bank as the ASB to survive, especially given the very tight regulatory regime that now exists for banks in Britain.

“Up to 70 people will lose their jobs over the next few months and I, along with Neil Gray MP, will be doing all I can to ensure that every possible effort is made to help these good people find alternative employment.

“Over the past few months a lot of effort has gone into trying to save the ASB but the regulators couldn’t be satisfied.

“However it should be stressed that nobody’s money is at risk. All those with savings with the ASB will get back every penny that they have in the bank.

“This is the end of an era. All those people, past and present, who made the ASB the success it was should be proud of themselves.

“Events out with their control have led to this sad decision, but the bank’s long and proud history should never be forgotten.”