British state-controlled RBS (Royal Bank of Scotland) claimed last week that it will cut 680 jobs and close 259 branches as it lowers costs and heartens users to use mobile and online facilities. The newest round of closures at the Edinburgh-located bank puts 1,000 jobs at jeopardy, and a similar decision by Lloyds Banking Group this week claimed that it might end 49 branches.
British banks are geared up to shut a record 762 branches in 2017, the local media claimed in August 2017, attracting disapproval for depriving users of access to in-person facilities, specifically in inferior parts of the nation. Managing director at RBS for branch banking, Jane Howard, claimed to the media by telephone that users are more and more utilizing online and mobile channels more willingly than offline branches, and RBS had to respond to this situation.
“There will be some users that will be truly dissatisfied we are shutting branches and I recognize why. But it is significant that we do react.” RBS is spending in its digital offering and its remaining branches, Howard claimed. He further added, “Given what we are aware, we have got the correct shape of system.” Unite, a labor union that stands for staff of RBS, claimed that the bank was destroying its network of branches.
“This declaration will eternally modify the face of banking in this nation leading to over a thousand of workers losing their jobs and a lot of high streets without any facilities of banking,” Unite national officer, Rob MacGregor, claimed to the media. The newest closures will impact the Natwest and RBS brands in Wales, England, and Scotland, leaving it with almost 744 branches.
Increasing competition from startup banks and low interest rates have eaten into earnings for many of banks in Britain, he further claimed in his statement.