News

Declining branch traffic translates to 158 closures for RBS

March 28, 2017

Last month, HSBC announced that it would close 62 branches in the U.K., and RBS telegraphed that it might soon do the same, stating that it was looking to reduce its operating cost by 750 million pounds ($942 million) this year.

Now the bank has made it official with the announcement that it will close 158 branches across the U.K. within the next few months. This will include 30 RBS locations and 128 NatWest locations, according to a report by Finextra.

RBS explained its reasons for the closures in a statement:

As customers change the way they bank with us, we must change the way we serve them. The role of the branch is fast moving to a centre for advice, away from basic transactions. While the branch will still be a core part of our offering to customers, inevitably some branches will have to close.

Since 2010, NatWest and RBS have seen a decline of 43 percent in basic banking transactions carried out at branches, the report said. Within the same time frame, the number of mobile and online transactions has grown 400 percent.

HSBC noted a similar phenomenon in its February announcement, citing a 40 percent decline in branch traffic since 2012, and a 40 percent increase in digital transactions in 2016 alone.