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TSB to shut down 164 bank branches; 1,000 jobs likely to be lost

TSB to shut down 164 bank branches; 1,000 jobs likely to be lost
TSB to shut down 164 bank branches; 1,000 jobs likely to be lost

TSB Bank plc., the U.K-based commercial and retail bank, has reportedly announced plans to close its 164 high street bank outlets in a move that will cut around 1000 jobs in the forthcoming time.

Sources cite that the ‘considerable shift in customer behavior’ has prompted the bank to make this decision. The announcement comes on the back of increasing number of people favoring online banking over the traditional banking system. The bank’s move to close outlets will leave it with only 290 branches at the end of 2021, down from 475.

Previously, TSB announced that it was axing the role of branch cashier due to steep decrease in-branch transactions. The bank told 929 employees that they had to retrain, take voluntary redundancy or change roles under the cashier announcement. In a similar move, Co-operative Bank also announced its plans to shut 18 branches in August.

While the bank’s investors put pressure on it to reduce the branch network, the wave of closures has also raised concerns among campaigners and MPs that people that are not able to use digital banking solutions could be left without access to required banking services.

Several studies also back these concerns and estimate that every sixth people in Britain will struggle to manage their financial transactions without a traditional banking system. The Financial Conduct Authority, the UK’s financial regulatory body, has created guidelines that could for regional banks to consider opening shared locations in backward communities or mobile branches.

Most of the major streets banks are anticipated to take part in a half year trial of shared banking hubs operated by Post Office that will start in October. It has enabled banks to send mangers to a shared location for a few days of a week, possibly allowing cost-sharing,

Source Credit - https://www.theguardian.com/business/2020/sep/30/tsb-closes-164-bank-branches-with-loss-of-almost-1000-jobs

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Vinisha Joshi

Despite graduating with an engineering degree in electronics and communication, Vinisha Joshi chose the road less travelled, and decided to pursue her career in content writing . Currently, she pens down articles for cuereport.com and a few other distinguished news platforms, pertaining to business and finance.