THE Post Office has published figures showing the organisation’s fast-growing and vital role in supporting local communities and economies with cash handling services in Scotland.

The use of Post Offices in the depositing and withdrawal of cash has soared in Scotland over the past two years, rising by 11% year on year.

The Post Office believes demand has been driven by bank branch closures and rising awareness of Post Offices’ availability to bank customers, opening hours and other benefits.

Cash plays a vital role in local economies and communities, and especially for small businesses and vulnerable members of society, meaning Post Offices play a “lifeline” role.

The figures were announced as the Post Office’s banking director, Martin Kearsley, gave evidence yesterday at a Scottish Affairs Committee evidence session on Access to Cash in Scotland. Post Offices can be used by personal and business customers of 30 banks, building societies and credit unions to deposit and withdraw cash, deposit cheques and check balances.

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Last year, total cash deposits and withdrawals by business and personal customers at Scotland’s 1300 branches rose to a total of £2.41 billion, up 11% compared with £2.18bn in 2020.

Which?, the consumer advocacy group, earlier this month told the Scottish Affairs Committee in Westminster that the number of bank branches in Scotland had fallen by 53% over the past seven years, as 1040 branches have been closed.

There is also a growing awareness of other benefits to using Post Offices for everyday banking.

Often located in convenience stores, they usually have longer opening hours and customers can pick up groceries and pay bills at the same time.

In addition, communities appreciate the crucial role that Post Offices play in local economies, where cash transactions can be critical for small businesses, and where many individuals, and especially vulnerable members of society, rely on cash.

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Postmasters frequently handle deposits and withdrawals to the penny, reflecting customers’ careful budgeting.

The data also shows that the average personal deposit last year was £324.83, and the average withdrawal was £85.34. For business customers, the average deposit was £1063.02, and the average withdrawal was £226.05.

Kearsley said: “Post Offices increasingly provide a lifeline for individuals and businesses across Scotland, especially amid branch closures.”

The Post Office is also trialling “banking hubs” whereby five major banks (RBS, Santander, Virgin Money, Bank of Scotland, TSB) rotate a provision of weekday services as part of an industry commitment to protect the UK’s cash and banking services.