Don't bank on it!

Amidst all the talk of pubs closing and businesses failing, there’s one institution on the High Street that many commentators seem to have missed. The institution I’m talking about, is one which is so fundamental to the conduct of business and commerce, that it’s disappearance ought to be raising far more alarm bells than it actually has – or perhaps not?

In case you hadn’t already guessed, the institution I am talking about is the High Street bank, once seen as the corner stone of most town centres, and regarded as unshakable, pillars of stability in a world that often seems to have gone completely mad. Times change though, and as we all know nothing stands still, no matter how much we would like them to

 As with pubs, banks are closing in their droves, and the reasons for this are purely monetary, as you might have guessed, and whilst to a certain extent. other financial institutions are also shutting up shop, the extent of this is far less than what we are currently witnessing from the major players in the game. These players are the big five banks that we’ve all grown up with and whose absence will certainly be noticed, and their presence sorely missed. They are of course, Barclays, HSBC (formerly the Midland,), Lloyds and National Westminster – Nat West, for short.

In Tonbridge, we have already seen the closure of Barclays and Lloyds are due to shut up shop at the end of this month. Then, last week, the announcement came that Nat West too will be closing in the run-up to Christmas. So, the National Westminster Bank, with its imposing street corner position, ornate stonework, and sleek marble pillars, a real symbol of longevity, stability, and permanence, and an institution that has served the town of Tonbridge and its inhabitants for decades, will soon be just another empty building.

When Eileen and I had our off-license business, it was that same branch of the Nat West that looked after all our banking needs and was the place where I made a beeline to on Monday and Friday mornings, to pay in the weekly and weekend takings. Because of this twice-weekly ritual, I got to know the counter staff, as we inevitably exchanged a few pleasantries.  It is this loss of a facility, that provides an essential service for local businesses, that will have the most detrimental effect on the commercial life of the town, coming as it does, on the heels of the loss of Barclays and the imminent closure of Lloyds.

A month or so ago, Mrs PBT’s enjoyed a meal and an evening out with some old friends. Their chosen destination was a fine old pub, in a rural location, and whilst settling up the bill at the bar afterwards, the landlady was bemoaning the loss of banking facilities in Tonbridge. She was telling the group that she now had to drive into Sevenoaks, a town renowned for its congestion and poor car parking facilities, in order to bank the weekly takings and procure sufficient change, rather than making the shorter and much more convenient journey into Tonbridge.

I’m not going to name the pub, although it is a well-known and well-regarded establishment which, like many local businesses is struggling to keep its head above water. The last thing that business owners in Tonbridge want is the extra hassle of being unable to pay in the takings locally, but their concerns are falling on increasingly deaf ears. Like its competitors, Nat West has blamed the closure of its Tonbridge branch, on a falloff in customer numbers compared to pre-pandemic levels, but many see this as just another excuse for what is clearly a cost-cutting exercise.

In common with other institutions, banks seem more concerned about their shareholders, than their customers, and whilst they would argue they are merely responding to customer demand by offering options for home banking, they have in effect, sowed the seeds of their own demise. Cynics would point out that the closure of walk-in High Street facilities, is a deliberate ploy to discourage the use of cash – an aim shared by both the banking system and the government, and whilst this judgement might well be correct, both institutions underestimate the important role that cash still plays in today’s world of business and commerce.

I’m sure this trend is going to run, and run for some time, but it isn’t one we can afford to ignore, especially when one considers the negative effect it is having on cherished institutions like the local town and village pub. It is also madness, for a town the size of Tonbridge to be left with just one bank, and even that could change, as who's to say HSBC won't shut up shop as well.