Loans transferred to TSB as Airdrie bank closes

Airdrie Savings Bank (ASB), established in 1835, has told customers and staff it will close down because “as a very small bank, we will not have the resources in the years ahead to provide the products and services our customers need in an increasingly digital world.”

The bank added in a statement: “The board and executive team have therefore taken the difficult decision in the best interests of our customers to close down our accounts and ask our customers to move to an alternative banking provider.”

ASB said that while it was financially strong “we have found it increasingly difficult to maintain our position as a small independent savings bank in today’s highly-competitive financial world.”

It added: “In recent years, this has forced us to take some difficult decisions — including the closure of several branches — in a bid to tackle a shrinking customer base, declining footfall across our network and ever-rising operating costs.”

ASB said that as part of the phased reduction of its activities, it has established a new business relationship with TSB.

TSB is part of the Spanish banking group Sabadell.

“This new relationship will include transferring all secured customer loans to them.”

ASB said its Coatbridge and Bellshill branches will close on April 28, 2017, and its current account service, including internet banking and Visa debit and Electron card use will be withdrawn on the same day.

It said mortgages and other secured loans would transfer to TSB.

ASB’s main Airdrie branch and head office in Stirling Street will remain open “for as long as it takes us to help, support and enable our customers to transfer their banking business to an alternative financial services provider of their choice.”

ASB expects the head office to close before the end of 2017.