NatWest are at it again – this time “hitting businesses in the pocket”

Fresh from killing opportunities for Law graduates seeking a career in the legal profession, NatWest have set their sights on a new target: their own bank.

Last year, the majority taxpayer-owned bank launched their so-called “Customer Charter” in a bid to become “Britain’s most Helpful Bank”. They called it “a serious?commitment”, publicised the fact that, over the past year, they have “made some concrete changes to improve the ways we help our customers” but said that they “want to do more”.

Perhaps, then, they should refer to number 9 on their “Customer Charter”, which reads:

“We pledge to stay open for business if we are the last bank in town and will consider a range of options to ensure a local banking service is available”

It was a pledge that won a lot of support, that they publicised on their latest TV advert. With branches, particularly in rural locations, closing down, residents, particularly those who are less mobile, rely on those banks who remain to provide them with services they need on a regular basis.

With the departure of Nationwide and Lloyds TSB, NatWest were technically “the last bank in town” on the Watling stretch of the A2, so their customer charter dictates that they should stick around to serve their customers, right?

Wrong!

The News reported yesterday (12 May 2011, page 21) that they are to close their branch along the A2 in July, which they themselves admit will force customers who currently use that branch to travel over a mile to the nearest alternative in Gillingham High Street.

NatWest were apparently deep in thought about the branch, but “[h]aving reviewed the service at Watling Street, we have taken the decision to close”, adding that customers can still “receive a full service at our High Street, Gillingham branch just over a mile away”.

Local businesses and residents, though, are not happy. “it’s not just losing a service but the bank brings people to the area,” one store manager told the News. “Natwest say on their?adverts?they’re helping the community by not shutting down stores.

“But they say one thing and do the opposite … the closure of Natwest will definitely have a negative impact.”

Businesses along the A2 at Watling Street have a disadvantage as against most in other shopping areas in Medway. Although they see a lot of traffic passing through every day, it is mostly through traffic, which will usually only stop to use services like the bank. Thus the bank provides a lot of extra custom to the nearby businesses which will be lost in two months’ time.

Another local business owner agrees: “Ultimately it will affect all businesses around here. The bank provides a facility for the local people and was an ideal location for passing custom.”

In February, after receiving my offer from the College of Law, I opened an account with NatWest in anticipation of applying for the College of Law loan. When it was pulled, I immediately closed my account in disgust and took my business to Barclays instead (at this point, I would advise all prospective College of Law students to either follow suit, or go with the Co-operative Bank, unless they have alternative funding in place).

The continued withdrawal of NatWest services has left me angry and disgusted. It is part of the Royal Bank of Scotland Group, which is almost completely owned by the British taxpayer and has no qualms about rewarding its Chief Executive with a bonus of ?2.04m (however it is presented). Yet when it comes to those people who rely on banks, they are seemingly nowhere to be seen.

When banks such as NatWest’s parent had to be bought out during the banking crisis, they lost the trust their customers had invested in them. To return to a stable and affordable footing sufficient enough for the government to release its shares in the banks, they need to rebuild that trust to existing and potential customers.

Keeping banks open even when they are “the last in town” is a noble promise, and one which is important not just to local residents who may be unable to easily travel to the next closest branch, and thus rely on that promise, but also to the local community itself, generating extra trade for local businesses and supporting the local economy.

Breaking that promise also breaks the trust that customers had started to re-invest in those banks. It puts less mobile residents at a disadvantage and risks the viability of local businesses.

NatWest cannot be forgiven for breaking their promise and putting the local economy, the local community, at risk!