Bank cuts confirmed
TSB axes 849 jobs and shuts 164 branches in digital move
More branches will close
TSB has announced 849 net job losses alongside the closure of 164 branches as the bank continues to implement its three-year strategy announced in November 2019.
The bank said it anticipates the vast majority will be colleagues who come forward for voluntary redundancy.
TSB is making axing 969 jobs while 120 new operational positions are being created meaning there will be an overall net reduction of 849. A list of branches closing will be published later today and are believed to include 73 in Scotland, accounting for 300 jobs.
It said the changes have been driven by a “significant shift in customer behaviour”, including a reduction in the number of customers using branches and a significant acceleration in digital adoption.
As part of TSB’s strategy, the bank had previously set out its intention to reduce its branch network in order to remain competitive compared to the wider industry. These changes accelerate the pace of the overall branch transformation.
Debbie Crosbie: ‘not an easy decision’ (pic: Terry Murden)
Debbie Crosbie, chief executive of TSB, said: “Closing any of our branches is never an easy decision, but our customers are banking differently – with a marked shift to digital banking.
“We are reshaping our business to transform the customer experience and set us up for the future. 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.
“We remain committed to our branch network and will retain one of the largest in the UK.”
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.”
Branches earmarked for closure have been selected to ensure 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. The network will be the 7th largest in the UK.
TSB continues to reshape its business to ensure its network is fit for the future.
TSB’s digital services have been bolstered by its partnership with IBM Cloud which allows the Bank to roll out secure digital offerings at pace. This partnership saw TSB launch TSB Smart Agent, a new online chat function that went live within a matter of days during the Covid-19 lockdown.
Despite the strategic focus on enhanced digital services, TSB remains strongly committed to providing direct face-to-face support for all its personal and business customers.
The network will have 290 branches and is further enhancing its partnership with the Post Office including adding the ability to deposit and withdraw cash using a card, for both business and personal customers, and collect coin change from pre-agreed locations.
Alongside this, TSB is partnering with G4S Cash Solutions to set up a cash collection service for its business customers.
TSB will introduce 100 mobile advisors to provide additional support to some communities across the country where branches are closing. TSB plans to work with local authorities and key community organisations to identify suitable locations for mobile advisors.