TSB has announced plans to close 164 branches and eliminate 969 jobs while speeding up the change launched last year.
The cuts, blamed on a shift in customer behavior from online banking to online banking – which have been accelerated by the COVID-19 pandemic – will reduce the main street network to 290.
This compares to more than 600 branches when TSB was re-launched in a spin-off from Lloyds Banking Group in 2013.
The bank said it was registering nearly 4,000 customers per day for its digital app, up from 1,200 before the pandemic, while the percentage of transactions done digitally or through automation – which stood at 90% last year – rose the most during the outbreak.
“Closing any of our branches is never an easy decision,” said Debbie Crosby, Chief Executive of TSB, “but our clients treat banks differently – with a marked shift to digital banking.”
“We are reshaping our business to transform the customer experience and prepare us for the future.
“This means striking the right balance between the main street branches and our digital platforms, enabling us to provide the best experience for our individual and corporate clients across the UK.”
The cuts, scheduled for next year, add to the ongoing program for Announcing the closure of 82 branches When TSB first launched a three-year transformation plan last November.
This means that during this period the number of branches will have decreased from 536 before the shutdown began, although the bank indicated that it would still have the seventh largest network in the UK.
It is the latest bank to announce the closure, hereafter Competitive cooperativeWhich said last month it was shutting down 18 websites – while The largest lenders Such as Lloyd’s And NatWest have been reducing their high street presence.
TSB said it is taking steps to support at-risk clients in rural locations.
The bank said branches designated for closure were on average less than 0.3 miles from the nearest post office – TSB customers will be able to make deposits and withdrawals.
It said the vast majority of job losses are expected to come through voluntary layoffs.
A total of 969 “role reduction” will be compensated with the creation of 120 new roles.