Member Article

RBS and Natwest reveal branch closures in the triple digits with 470 jobs at risk

UK banking giant the Royal Bank of Scotland (RBS) has announced it is to shutter 158 branches across its RBS and Natwest businesses as more consumers opt for online banking and app-based services.

Citing a ‘dramatic shift’ in consumer behaviours, the taxpayer-owned bank said that transactions at its local branches had fallen significantly since 2010 while online services had enjoyed a 400% increase over the same period.

In total 30 RBS branches are set to close along with 128 Natwest branches in towns and cities across the UK within the next six months, as the bank continues to see out ways to tighten its belt after revealing annual losses of £7bn this year.

At the time of its financial results in February, the bank hinted that it would have to resort to branch closures to help balance the books, after it was forced to swallow £10bn in one-off costs with part of that due to the ongoing Libor scandal and the misselling of toxic securities in the US.

In comments reported by The Sun, an RBS spokesperson said: “As customers change the way they bank with us, we must change the way we serve them.

“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.”

In an attempt to mitigate the impact on smaller and rural communities, RBS has also said it will create 50 new community bankers who will service customers in remote areas who may be unable to gain access to a local branch.

Today’s moves follow similar retrenchment from other high-street banking rivals, with closures from the likes of HSBC and Lloyds contributing to over 1,000 branch closures in the UK in the last two years alone.