TSB bank to close 164 branches and axe 900 jobs

TSB is closing 164 branches, with the loss of more than 900 jobs.

The closure of around a third of its national network comes amid a drop in the number of customers using branches and a significant switch to online banking.

The bank will offer affected staff voluntary redundancy and a consultation period will commence.

It expects 969 roles will be lost, although it is creating 120 digital and customer services roles at the same time.

Branches to be shuttered see little footfall, TSB bosses said. Some of them have fewer than 100 regular customers.

The bank explains that this is because some of these branches are not in the right locations or don't have the right facilities, although TSB insists it remains committed to face-to-face banking.

With 290 remaining branches, TSB will still have the seventh largest UK network and be bigger than Coop Bank and Virgin Money combined.

Many of the branches earmarked for closure are in rural communities but TSB says it has taken care to ensure vulnerable customers still have access to cash.

It says 94% of TSB customers can travel in 20 minutes or less to a branch, and the new network will have an average of 17,000 customers per branch, which remains below the UK average.

Robin Bulloch, customer banking director at TSB, added: “Alongside these changes, we will continue to invest in our remaining branch network to offer high quality banking services, fully integrated with improved digital capability.

“We are working to ensure the transition towards digital – which is being seen right across the economy – is handled sensitively and pragmatically for our colleagues and customers. We’re taking steps to support vulnerable customers and those in rural locations.”

TSB last closed branches in November 2019 when it shuttered 82 sites putting 370 jobs at risk - here's the full list.

Campaigners have previously raised concerns about the widespread closure of both bank branches and ATMs.

Consumer group Which? found that two-thirds of people would without convenient access to a branch.

It also showed that 11million people lack the confidence to carry out basic banking tasks online.

Gareth Shaw, head of money at Which?, said: "These drastic cuts will be a huge blow to customers who rely on face-to-face banking, and highlights that the alarming rate of UK bank branch closures shows no signs of letting up.

"While the introduction of new FCA guidance to protect those who are unable to take advantage of new ways to bank is a step forward, it won't be enough to safeguard access to essential banking services if there is a domino effect of branch closures across the country."

TSB isn't alone in closing branches.

Earlier this year, Halifax and Bank of Scotland closed 56 branches, while just this month the banks' parent company Lloyds Banking Group resumed restructuring plans that will see 865 jobs axed.

Virgin Money, Clydesdale and Yorkshire bank also closed 56 branches earlier this year, while HSBC announced 27 branch closures in February.

As of March 2020, more than 8,700 free ATMs had been axed since January 2018, while more machines than ever were charging for withdrawals.