TSB will shut 164 of its branches and lower 960 jobs, blaming “a significant shift in customer behaviour” as extra prospects financial institution on-line.
The determine is along with the 82 branches it stated it could shut in November, when it set out plans to save lots of £100m by 2022.
A checklist of the affected branches and their closure dates has now been printed after employees have been knowledgeable.
Union Unite described the transfer as “a dark day for the finance sector”.
The financial institution stated the closures weren’t an “easy decision” and had been accelerated by the pandemic.
From the tip of subsequent 12 months TSB can have 290 branches – down from 475 at the moment.
The financial institution hopes many of the job cuts will come by means of voluntary redundancies, and stated it could additionally create 120 new positions.
It stated branches with the bottom footfall would go.
“Our customers are banking differently – with a marked shift to digital banking,” stated boss Debbie Crosbie.
“This means having the right balance between branches on the high street and our digital platforms, enabling us to offer the very best experience for our personal and business customers across the UK.”
Unite’s nationwide officer Dominic Hook stated: “Unite has argued for some time that the financial services industry has a social responsibility not to walk away from its local customers who continue to need access to banking in bank branches.
“It beggars perception that simply seven years in the past TSB had 631 native branches and this announcement will cut back that quantity to merely 290 branches. “
Today, TSB has 475 branches. By the tip of 2021, it can have 290.
They are stark numbers for a financial institution that has at all times promoted itself as a neighborhood service, and as soon as attacked rivals for reducing branches.
The closure plan shall be a blow to employees, conscious of the broader financial outlook as they contemplate whether or not to volunteer for redundancy.
It may also be a blow to prospects who nonetheless like to make use of a department, and to small companies that hope to maintain journey occasions to a minimal when depositing money.
Partnerships with the Post Office and money assortment companies intention to mitigate these issues.
But, whereas buyer behaviour is altering throughout the financial institution sector, some persons are being compelled to financial institution otherwise – and so they might not really feel comfy doing so.
TSB is the most recent financial institution to announce closures through the pandemic.
In August the Co-operative Bank has stated it can lower 350 jobs and shut 18 branches because of the present “economic uncertainty” and the shift to on-line banking.
Natwest Group additionally stated it could lower 550 jobs in branches and shut one in every of its remaining places of work in London.
TSB, which is owned by Spanish lender Banco Sabadell, has been dogged by technical issues, with an IT failure in 2018 leaving as much as 1.9 million prospects unable to financial institution on-line for a number of weeks.
Customers have been moved on to a brand new system, however an investigation discovered it had not been examined correctly earlier than going stay. It value TSB a complete of £330m for buyer compensation, fraud losses and different bills.
As not too long ago as final month customers have been unable to entry on-line banking. And final 12 months, a “processing error” meant wages and different funds weren’t paid into some TSB prospects’ accounts.