The UK's last remaining independent savings bank decided to close over concerns about losses potentially leading to a wind-down by regulators, MSPs have heard.

Airdrie Savings Bank (ASB), founded in 1835, announced last month it will close its two branches in Coatbridge and Bellshill, both North Lanarkshire, on April 28 as part of a phased shutdown of operations, with the loss of up to 70 staff.

Holyrood's Economy, Jobs and Fair Work Committee heard the bank had weathered the financial crisis relatively well compared to larger banks but a combination of low interest rates, increasing digitisation and the cost of greater regulation led to the decision to close.

Chief executive Rod Ashley told the committee: "We undertook a strategic review of the options for the bank and that led us to the decision that the medium to long-term position for the bank was sufficiently uncertain that in order to act in the best interests of the depositors that we would take the decision at this point in time in order to conduct an orderly wind-down of the bank affairs, in order that there might be a community benefit at the end of the wind-down process.

"We could have ended up in a situation where the bank may have continued making losses for a number of years to come and there would come a point by which the control of any wind-down would be taken out the hands of the local community, and out of the local trustees, and would be handled by the regulators."

He said the bank had considered becoming part of a merger or takeover but this was not possible due to the corporate structure and discussions with credit unions revealed it would be easier to set up a new credit union than to transform into one.

MSPs heard a "handful" of staff had already secured new jobs and a consultation process is under way on redundancies.

Unite regional officer Wendy Dunsmore told MSPs the staff were an "absolute catch" as they were rewarded for their banking skills rather than "what they could sell or mis-sell".

Professor Charles Munn, of the University of Glasgow, said the emergence of new technology such as Apple Pay would lead to commercial banks experiencing the same kind of pressures as ASB as it is "virtually impossible" to make money from current accounts.

ASB is understood to have about 10,000 current accounts and 30,000 deposit accounts, and all current accounts will close on April 28, with loans and mortgages transferred to TSB.

The head office in Airdrie will remain open for as long as is needed for customers to transfer their money to an alternative banking provider, which it is thought could take to the end of the year.