TSB has announced it will close 164 branches in 2021, which will see it close more sites than any other British bank has done in 2020, while 900 jobs will be lost.
TSB’s branch closures are part of a three-year strategy to reduce its physical network and focus more on digital services.
With 164 closures set for next year, on top of the 21 scheduled before the end of 2020, the changes to TSB’s national network are already larger than those carried out by HSBC, Virgin Money and Lloyds this year.
Earlier in the year HSBC announced plans to close 27 branches while Lloyds would be shutting 56. At the same time Virgin Money confirmed it would be closing 22 sites and merging a further 30.
By the end of 2021 TSB is aiming to be left with 290 branches, which it expects to be the 7th largest in the UK. These closures reflect changes in customer behaviour and TSB’s ongoing digital transformation.
This has so far has included a partnership with IBM Cloud, which allowed it to roll out the online chat function Smart Agent, and the opening of a new tech hub in Edinburgh which created 100 new IT jobs.
However, despite cutting 900 jobs across its branch network, TSB was unable to confirm what further developments would come in digital, off the back of this latest development.
A spokesperson for TSB said he was not aware the bank was planning any additional hires as part of its digital transformation.
The future of digital banking and branch networks will be among topics discussed at the Lending Summit on November 16.