23 February 2017
Visit experienceinfosys.com

RBS to close 44 branches as customers go mobile

03 April 2014  |  7552 views  |  0 RBS Bank branch sign

RBS is shutting 44 branches across the UK, blaming a 30% fall in in-store transactions over the last few years for its decision.

The bank - 81% owned by the taxpayer thanks to a 2008 bailout - says that 14 of the branches being axed are "the last banks in town", which are open for just a few hours a week and have very few customers.

The closures come despite RBS specifically pledging to stay open for business if it is the last bank in a town in a 2010 'customer charter' designed to rebuild public faith in the wake of the bailout.

Explaining the u-turn, a spokesman says: "Banking has changed significantly over the last few years as more and more of our customers are banking with us where and when it is convenient for them.

"We have to adapt to what our customers want, which is why we're investing in a range of other ways our customers can bank with us, including online and telephone banking, our mobile app, and in any one of the Post Office's 11,500 branches across the UK."

RBS says that there has been a 30% fall in the number of transactions carried out at its branches since 2010. The number of online and mobile transactions has now surpassed those taking place in branches and ATMs.

RBS recently ran a TV ad that billed a commuter train - the 7.01 from Reading to Paddington - as its 'busiest branch', with over 167,000 travellers using their mobiles to conduct transactions on their way into work.



However, the bank insists that it remains committed to its 2000-strong network, and that 93% of customers are still within 15 minutes of a branch.

Last week Clydesdale and Yorkshire Banks said they will close 28 branches after experiencing a similar drop off in usage. In November, Barclays confirmed plans to axe 1700 customer-facing jobs from its branch network in 2014, citing the rise of new customer channels, particularly mobile banking.

The change in customer behaviour is industry-wide. Figures release by the British Bankers Association this week show that Brits have now downloaded more than 12.4 million banking apps while the number of transactions made using them has nearly doubled in a year, hitting 18.6 million a week in 2013.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

UK mobile banking transactions double in one year

UK mobile banking transactions double in one year

31 March 2014  |  15459 views  |  1 comments | 32 tweets | 23 linkedin
Clydesdale and Yorkshire Banks to cut branch network; invest in Internet and mobile

Clydesdale and Yorkshire Banks to cut branch network; invest in Internet and mobile

25 March 2014  |  6284 views  |  0 comments | 11 tweets | 9 linkedin
Payday traffic knocks over Barclays and RBS mobile apps

Payday traffic knocks over Barclays and RBS mobile apps

28 February 2014  |  9244 views  |  0 comments | 7 tweets | 11 linkedin
Barclays to replace 400 branches with supermarket outlets

Barclays to replace 400 branches with supermarket outlets

29 January 2014  |  8416 views  |  5 comments | 24 tweets | 10 linkedin
Barclays blames rise of mobile banking for 1700 branch job cuts

Barclays blames rise of mobile banking for 1700 branch job cuts

15 November 2013  |  11725 views  |  2 comments | 19 tweets | 13 linkedin
Barclays boss hints at branch closures as customers go mobile

Barclays boss hints at branch closures as customers go mobile

31 October 2013  |  7593 views  |  0 comments | 5 tweets | 4 linkedin
UK has lost 40% of bank and building society branches since 1989

UK has lost 40% of bank and building society branches since 1989

20 August 2013  |  6696 views  |  1 comments | 9 tweets | 4 linkedin
Jobs to go as Ulster Bank takes axe to branch network

Jobs to go as Ulster Bank takes axe to branch network

03 July 2013  |  3580 views  |  0 comments | 4 tweets | 3 linkedin
RBS to cut 1470 jobs in retail shake-up

RBS to cut 1470 jobs in retail shake-up

16 May 2013  |  4497 views  |  0 comments | 5 tweets | 1 linkedin
In wake of RBS meltdown, MPs warn banks on IT systems

In wake of RBS meltdown, MPs warn banks on IT systems

04 September 2012  |  8732 views  |  3 comments
RBS sets aside £125m to cover IT meltdown costs

RBS sets aside £125m to cover IT meltdown costs

03 August 2012  |  8096 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
http://www.financialcrimerisk.fiserv.com/aml?r=finextra

Top topics

Most viewed Most shared
IBM and Visa join forces to turn billions of connected devices into points of saleIBM and Visa join forces to turn billions...
18941 views 11 comments | 56 tweets | 92 linkedin
hands typing furiouslyBlockchain Technology
10348 views 1 | 9 tweets | 2 linkedin
EBA to relax controversial PSD2 authentication rulesEBA to relax controversial PSD2 authentica...
10191 views comments | 49 tweets | 67 linkedin
RBS to become fintech fund and high street outlet for challenger banks under HMT remedyRBS to become fintech fund and high street...
7644 views comments | 37 tweets | 33 linkedin
Standard Chartered connects corporate customers to WeChatStandard Chartered connects corporate cust...
6085 views comments | 17 tweets | 19 linkedin

Featured job

Six Figure Base + Commission + Stock Options
London

Find your next job