Boss to face MSP questions over demise of Airdrie Savings Bank

Rod Ashley, the chief executive of Airdrie Savings Bank, will today answer questions from MSPs over the demise of the 182-year-old, and last remaining UK independent savings bank.

The bank announced it was closing its doors last month with the potential loss of 70 jobs.

At the time of closure the bank was understood to have had about 10,000 current accounts and 30,000 deposit accounts.

Mr 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 such as the regulatory burden faced by small lenders and the costs involved in investing in new technology.

The Scottish Parliament’s economy, jobs and fair work committee will hear from Mr Ashley together with Professor Charles Munn of the University of Glasgow and Wendy Dunsmore of the Unite union.

It will look at how the bank was affected by the financial crisis and whether current regulations are a barrier for challenger banks. The committee will also look at lessons learnt for the financial sector, including credit unions.

Last week Airdrie Savings Bank made a fresh call urging customers to transfer their business to another financial services provider before the bank’s winding-up process is complete.

Mr Ashley said it was important customers began the process of closing their accounts “at their earliest convenience”.

In last month’s announcement, a “phased end to business activities” was outlined with the bank’s Coatbridge and Bellshill branches to be shut on April 28, when internet banking and VISA debit cards will also be withdrawn and current accounts closed.

The Airdrie headquarters on Stirling Street will remain open until all customers have been transferred to other providers ahead of an anticipated closure in the “final quarter” of this year.

“It is clear the vast majority of our customers have understood and accepted the sound reasons for the board of trustees’ decision to wind up the bank,” said Mr Ashley.

“An encouraging number either have closed or begun the process of closing their accounts with us. But it is important those customers who have not got in touch with us yet do so at their earliest convenience.”

Mr Ashley added: “We are hugely appreciative of the calm and extremely measured way in which our loyal and valued customers have understood and accepted the reasons why we are winding up the bank.

“Hundreds of deposit and current account holders have closed or are closing their accounts and we are helping many of them to identify a suitable alternative bank or building society. We are hoping this early momentum continues and I would urge all other customers not to delay and to get in touch with us online, in person and by telephone as soon as possible.”

Mr Ashley also paid tribute to Airdrie Savings Bank’s “fantastic” staff in light of the 70 job losses the bank’s closure will cause.

He said: “They have responded magnificently to the call to manage the process in the way in which we have always acted – with total dedication and professionalism and in the very best interests of our customers.

“Every effort is being made both to achieve an orderly and phased end to our business activities and to provide our staff with the support they need during this difficult time for them.”

The institution – which can trace its roots back to 1835 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.