Virgin Money will put 255 workers at risk of redundancy as it revealed plans to cut one in three UK bank branches.
The Unite union described the 39 closures and accompanying job losses as a “disgrace”. Virgin Money will be left with 91 banks in the UK after shutting the branches.
Virgin Money, which increased its presence on the high street with the acquisition of much of the nationalised bank Northern Rock in 2011, said: “The number of customers using bank branches for day-to-day transactions has been on a downward trajectory for a number of years.”
It added that the branches closing had seen a reduction of 43% in customer transaction volumes. Some 96% of customers use the branches less than once a month, it added.
Chief operating officer Sarah Wilkinson said the firm would “pursue all options” to retain as many staff as possible with alternative roles.
“Each store closing is less than half a mile from the nearest Post Office, which customers can use to carry out day‐to-day transactions,” Virgin Money said.
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Unite general secretary Sharon Graham said: “While the financial services sector is acquiring eye-watering profits, they must start taking their responsibilities to customers and communities more seriously.
“Access to a bank and cash is a fundamental need for all our local high streets. Simply walking away from the consumers who bring the banks astronomical profits is a complete disgrace.”
Age UK has highlighted how older and more vulnerable people often struggle with online banking and has urged the creation of more “banking hubs” – spaces shared by several high street lenders – which could help communities that have seen all their bank branches close.
Unite national officer, Caren Evans said staff at Virgin Money UK were “understandably devastated”, adding: “Unite has urged the bank to rethink these catastrophic plans to withdraw banking services from communities who very much depend on the skilled and experienced banking staff.”
Last year, Lloyds Banking Group said it would close 66 branches between October 2022 and January 2023. Earlier this year it said it would close a further 22 while its subsidiary Halifax would close 18 sites. HSBC is closing 114 branches this year, Barclays 68 and NatWest 52. Nationwide has promised to keep all branches open until at least 2024.
According to Which?, between 2015 and May 2023, 5,162 bank and building society branches closed in the UK.
The Virgin branches that will close are: Belfast, Croydon, Harrow, Newton Stewart, Bournemouth, Derby, Hexham, Norwich, Brighton, Durham, Irvine, Oxford, Bristol, Ellon, Kendal, Reading, Bromley, Enfield, Kensington, Southampton, Cambridge, Exeter, Kingston, St Albans, Cardiff, Fort William, Liverpool, Swindon, Chelmsford, Golders Green, Lochgilphead, Turriff, Cheltenham, Gosforth Centre, London Haymarket, Wolverhampton, Chester, Guildford and Milton Keynes.
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