Royal Bank of Scotland to close 259 branches, cutting 680 jobs

LONDON: In a major layoff, the Royal Bank of Scotland announced that by the middle of next year, it plans to close 259 branches, which will lead to a reduction of around 680 jobs.

The plans come in the wake of larger migration of the public towards online and mobile services.

A total of 62 RBS branches and 197 NatWest outlets will be closed by the middle of next year.

While the RBS says that around 1,000 jobs may be affected due to the closure of these branches, it aims at saving some of these by redeploying staff.

"More and more of our customers are choosing to do their everyday banking online or on mobile. Since 2014 the number of customers using our branches across the UK has fallen by 40 per cent and mobile transactions have increased by 73 per cent over the same period. Over 5 million customers now use our mobile banking app and only one in five banks with us digitally," The Independent reported while quoting a spokesperson for the bank.

The RBS is reportedly writing to customers of affected branches to highlight alternative ways to bank in their area. Further, it highlighted the creation of a special “taskforce” to assist customers who were not yet comfortable or familiar with using online or mobile banking by teaching them the digital skills to bank online or on mobile.

Meanwhile, the United Kingdom’s biggest union, Unite, slammed the move as a betrayal of communities, while representing the RBS’ staff.

Headquartered in Edinburgh, Scotland, the RBS was established in 1727 and is one of the retail banking subsidiaries of The Royal Bank of Scotland Group plc, together with NatWest and Ulster Bank.   

The bank is still owned by the taxpayer to an extent of 72 per cent.