Hundreds of jobs at risk as TSB set to close 73 branches

TSB is set to close 73 branches in Scotland, affecting 300 jobs.

The Spanish-owned bank said the cuts follow a “significant change in customer behaviour” as fewer people use branches in favour of online banking.

It stated it created 100 new IT roles earlier this year at its tech hub in Edinburgh to meet the “soaring demand” for its digital services.

On Wednesday, the company announced it was shutting 164 branches across the UK, reducing its overall headcount by around 900.

As well as the branch network, those working in the mortgages and customer service operations teams are also affected.

The bank said it expects most of the redundancies to be voluntary, but did not rule out forcing staff out.

Branches earmarked for closure have been selected to ensure “94% of TSB customers in Scotland remain within 20 minutes’ travel time of a branch”.

The company previously said it intended to reduce the size of its branch network, but has now accelerated plans amid the pandemic.

It said its branch network will be the third largest in Scotland after the closures, and seventh across the UK.

It will leave the bank with 290 branches across the UK, more than halving its store estate over the past seven years.

Over the next two years, TSB said it will “continue to invest in its 62 remaining Scottish branches”.

Around 50 mobile advisors in rural communities will also be introduced to “deliver face-to-face support” for existing TSB customers.

Robin Bulloch, customer banking director at TSB, said: “These decisions are the most difficult we take, but we must always be guided by our customers – and we are clearly witnessing a substantial shift towards digital banking.

“We operate a more extensive branch network than most other banks in Scotland, including some much larger than TSB, and we need to reduce its size to reflect the changing needs of our customers and a fast-evolving operational environment.

“TSB remains committed to offering high quality banking services in branches across Scotland. We are also introducing mobile advisers to ensure we look after vulnerable customers and those in rural locations.

“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.”