RBS to shed 158 branches along with 400 jobs as digital banking rises
Royal Bank of Scotland Group and Natwest will see 158 branches close and shed 400 jobs as the bank blames a “dramatic shift” in banking practices.
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The banking group has overseen a 400% increase in online and mobile transactions since 2010, with 43% less activity in branches during the same period.
RBS said on Thursday that 770 employees would be affected by the branch closures, but hundreds of those will be positioned in other areas.
"We have seen a dramatic shift in the way our customers are choosing to bank, with more using mobile and online over traditional branch counters," a spokesperson for RBS said on Thursday.
In all, 30 RBS branches and 128 Natwest branches will face the chop with the group’s readjustment.
"We interact with our customers over 20 times more through digital channels than physical ones. As customers change the way they bank with us, we must change the way we serve them," the spokesperson added.
"The role of the branch is fast moving to a centre for advice, away from basic transactions. While the branch will still be a core part of our offering to customers, inevitably some branches will have to close."
RBS is still majority-owned by the state after its bailout in 2008, and is still hampered by costs associated with the rescue.
The bank’s share price closed 1.91% higher on Thursday after the announcement was made.