18th Jan 2017 17:49
LONDON (Alliance News) - CYBG PLC on Wednesday confirmed it will close 40 branches of Clydesdale Bank and 39 branches of Yorkshire Bank in 2017.
The London-listed owner of the two banks in September first announced it would be reducing its branch networks to focus on offering an integrated digital, mobile, telephone and branch service to its customers.
On Wednesday, CYBG said around 200 Yorkshire Bank and 200 Clydesdale Bank staff will be at risk of redundancy in light of the closures, though noted it would try to find roles for front-line branch staff either within its branches or elsewhere in the bank.
CYBG pointed to figures from the British Banking Association published earlier this year which showed the number of customers using their bank for day-to-day transactions had fallen by a third since 2011, and said it was reshaping its offering in response to changing needs.
As such, the group said it was committing GBP350.0 million over the next few years to invest in a "more sustainable" branch network and to boost digital innovation.
CYBG said it would be sending written notification to customers on the alternative ways of continuing to manage their accounts at least 12 weeks before branches closed.
"While the decision to close any branch is never an easy one, it is important that we, in line with other banks operating in the UK market, continue to respond to changes in the way customers want to bank with us," said Gavin Opperman, the customer banking director of both Clydesdale Bank and Yorkshire Bank.
"The changes announced today continue our journey towards a model that combines an enhanced digital platform with a right sized branch network; allowing customers to interact with us through a wide range of channels ? mobile, online, telephone, in-branch - whenever and however they want," Opperman added.
Shares in CYBG closed down 1.3% at 284.44 pence on Wednesday.
By Hannah Boland; [email protected]; @Hannaheboland
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