Authored by Jimmy Robertson, Head of Branch and Local Banking
This article was originally published by The Herald: https://www.heraldscotland.com/
What should banking look like in a digital age? The future of banking is not digital or physical. It must be both.
Every few months there seems to be another headline discussing the future of bank branches. The logic appears simple enough. Most of us now bank on our phones. Younger generations manage almost every aspect of their finances digitally. In that world, many would argue that physical banking is destined to become a relic of the past.
I disagree.
Too often, the future of banking is presented as a choice between digital convenience and human interaction. In reality, customers want both. They want the speed and simplicity of managing their money through an app, but they also want confidence that expert support is available when life's biggest decisions arrive.
That's why investing in branches remains essential, even as digital banking becomes the norm. Eight out of ten of our customers bank with us entirely digitally, and over 97% of current accounts are opened online.
I recognise that the role of the branch is changing, but its importance is not disappearing. Customers increasingly visit branches for support, reassurance and complex conversations rather than routine transactions. Buying a first home, planning for the future, building financial confidence or navigating an unexpected change; it’s in those moments customers value a knowledgeable colleague who will listen, understand their needs and connect them with the right support.
We reaffirmed our long-standing commitment to branches in June when we announced no further branch closures until at least 2029 and a £50 million branch refurbishment programme. In Glasgow, we completed a £3 million redevelopment of our historic Gordon Street branch, transforming it into a modern banking hub in the heart of the city. Our £2.5m Inverness site is now well established and Princes St in Edinburgh now houses an Accelerator Hub too – a space for scale-up SMEs.
For me, these investments reflect a simple belief: branches still have an important role when they are designed around what customers need now.
Scotland presents a unique banking challenge and opportunity. We serve some of the UK's most densely populated urban centres as well as rural and island communities where access to services cannot be taken for granted.
Any serious conversation about financial inclusion has to recognise that a one-size-fits-all model simply doesn't work.
Perhaps nowhere illustrates this better than Orkney.
For more than six decades, Royal Bank of Scotland's flying banker has travelled between islands to provide face-to-face support to communities that would never have been able to sustain a traditional branch network. At a time when many assume banking is becoming less personal, it remains one of the clearest examples of how important human connection still is. We are the only bank in the country to provide this service.
Of course, preparing a network for the future also means difficult decisions. June’s commitment came with the announcement that six branches in Scotland will close in September. It was a decision that wasn’t taken lightly. My priority is to make sure customers and colleagues continue to feel supported.
All the affected communities will still be able to access face-to-face banking locally, from a nearby branch or through our mobile branch network. Again, a service unique to Royal Bank of Scotland, we cover 7,500 miles every week, supporting 361 communities and serving 69,000 customers last year, including rural and remote areas where access to banking can be especially important. Alongside Community Bankers in banking hubs and Post Office partnerships, these services help customers access local, in-person support. Our modern, flexible and accessible banking model ensures we have the greatest coverage of any bank in Scotland.
We also operate the largest bank-operated free-to-use ATM network in the country and are testing new formats, including pop-ups in retail parks, shopping centres and at university events (with our latest pop-up opening at the Glasgow Fort later this month). The aim is straightforward: to make banking easier to reach and better shaped around how people in different parts of Scotland want to connect with us.
The next debate has already begun. Artificial intelligence is undoubtedly transforming banking and financial services, just as online and mobile technology did before it. But I believe those who predict AI will replace human banking are missing what customers tell us they actually value - expertise, empathy and reassurance when it matters, from trusted colleagues.
The greatest opportunity for AI is not to remove people from banking. It is to help skilled colleagues spend less time on administration and more time helping customers solve problems, make decisions and plan for the future.
As Scotland's banking habits continue to evolve, one lesson remains constant: banking has always been, and will always be, fundamentally about trust.
Trust is built through reliability, consistency and convenience. But it is also built through conversations, relationships and human understanding.
The challenge for banks is not choosing between technology and people. It is combining the best of both.
As we approach our 300th anniversary, this is the future of banking I believe Scotland needs, making a genuine difference to peoples’ lives and one Royal Bank of Scotland is determined to help build.
