TSB has today announced it will close 164 branches, with the loss of around 900 jobs.

The bank said that it anticipates the vast majority will be colleagues who come forward for voluntary redundancy, adding that the changes are part of its three-year turnaround strategy announced in November 2019.

TSB is making a total of 969 role reductions, while 120 new operational roles are being created meaning there will be an overall net reduction of 849 roles. Changes are being made across the branch network, and in mortgages and customer service operations teams. The bank said it has consulted with its recognised unions Accord and Unite.

The move was driven by a significant shift in customer behaviour, including a reduction in the number of customers using branches and a significant acceleration in digital adoption.

TSB chief executive Debbie Crosbie said: “Closing any of our branches is never an easy decision, but our customers are banking differently – with a marked shift to digital banking.

“We are reshaping our business to transform the customer experience and set us up for the future, this means having the right balance between branches on the high street and our digital platforms, enabling us to offer the very best experience for our personal and business customers across the UK.

“We remain committed to our branch network and will retain one of the largest in the UK.”

Robin Bulloch, customer banking director at TSB, added: “We are working to ensure the transition towards digital is handled sensitively and pragmatically for our colleagues and customers; we’re taking steps to support vulnerable customers and those in rural locations.”

Branches earmarked for closure have been selected to ensure 94 per cent of TSB customers can travel in 20 minutes or less to a branch, and the new network will have an average of 17,000 customers per branch, which remains below the UK average.

TSB noted that its digital services have been bolstered by a partnership with IBM Cloud, which allows the bank to roll out secure digital offerings at pace, like online chat function TSB Smart Agent.

TSB stated that it is building on a partnership with the Post Office, including adding the ability to deposit and withdraw cash using a card, for both business and personal customers, and collect coin change from pre-agreed locations. The bank is also partnering with G4S Cash Solutions to set up a cash collection service for its business customers.

TSB will introduce 100 mobile advisors to provide additional support to some communities across the country where branches are closing. It plans to work with local authorities and key community organisations to identify suitable locations for mobile advisors.

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