Airdrie Savings Bank in £10 million investment
A group of leading Scottish industry figures has invested £10 million in Scotland's last independent savings bank.
- By Stefan Morkis
- Published in the Courier : 28.08.10
- Published online : 28.08.10 @ 03.30pm
Dundee-based publisher D. C. Thomson and Co Ltd, Sir David Murray, Sir Angus Grossart, Alastair Salvesen, Stagecoach founders Brian Souter and Ann Gloag and Kwik Fit founder Sir Tom Farmer are among those to make the investment in the Airdrie Savings Bank.
It is understood each party is investing £1 million each in the bank, which operates as a mutual savings bank and so has no shareholders.
Founded in 1835, it currently has seven branches, all in North Lanarkshire.
At least one new branch will be opened as a result of the investment while the money will also be used to improve the bank's internet services and increase its lending power.
Jim Lindsay, general manager of the Airdrie Savings Bank, said the new investment would not affect how the bank is run.
"When customers come in we are not trying to sell them things, we ask how we can help them," he said.
Support
"These people are becoming involved because they think we are on the right lines — they're providing support and encouragement for us to grow further."
Mr Lindsay said the new branch is likely to be their first bank outside North Lanarkshire and said further expansion was possible but that the bank was content to move forward slowly.
Bank president Bob Boyle added, "The trustees are delighted that so many prominent Scottish business figures have come forward to back our ambitions to expand.
"Several are supporting us through a combination of deposits and borrowings.
"Airdrie Savings Bank, as you would expect, is approaching expansion with caution. We will dip our toe in the water by opening one branch at a time to prove the sustainability of growth before considering more ambitious plans."
Stagecoach boss Brian Souter said, "A number of businessmen in Scotland got together and decided that we should support the expansion of Airdrie Savings Bank principally because it's the only independent bank that's really remaining in Scotland, and it's built on mutual principles, which we all felt were really important.
"Airdrie Savings Bank represents what Scottish banks once stood for-security of funds, a focus on savings and outstanding personal service.
Traditional
"We aim to bring this traditional blend to the people of Scotland by supporting the bank's development as we believe the mutual principle is fundamental to the integrity of the bank.
"We are doing this because so many Scots are dismayed at what has happened within the banking sector.
"People are really wearied of what's happened with our banks and angry about it too, actually, justifiably.
"I think there is a real strong appetite for there to be a bank that's built on mutual principles, that is going to invest in Scotland, that's going to be owned by the people and operated for the people."
Mr Souter said the investment would allow the bank to lend to more customers.
"This is an incremental approach. First of all, we put some deposits in. Then we will also try to encourage the bank to lend to a wider group of Scottish businesses and then start up some new branches," he said.
"Then at that point they will need a bigger capital base and the idea would be that we would help with that down the line."
Mr Souter added that most of the "key depositors" were putting in £1 million each and the target was to get £10 million in deposits as a "starting point."
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