Financial Services

Virgin Money UK to close 31 branches in coming months

Bank led by former AIB chief David Duffy is blaming shift to digital

Virgin Money UK is planning to close office space in addition to some of its branches. Photograph: iStock

Thu Sep 30 2021 - 08:40

Virgin Money UK, which is led by Irishman and former AIB chief executive, David Duffy will close 31 of its 162 branches in the coming months as more customers shift to online banking, the British bank said on Thursday.

Announcing the cuts, it said there was an ever greater willingness to use “digital self-service”.

It will also cut its office space, a move the bank said would give staff greater flexibility around their working location.

Several banks paused branch closures in the early months of the pandemic but several have resumed cutbacks. Earlier this year, HSBC announced plans to cut 82 branches. In the second half of 2020 Britain’s biggest domestic lender Lloyds resumed plans to cut 56 branches and Sabadell’s TSB announced it was axing 164 branches.

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Such closures are controversial because they can hurt some customers, who prefer branches to the internet.

When Clydesdale Bank merged with Virgin Money in 2018 the group had a combined total of 245 branches but that will fall to 131 after these latest closures.

Earlier this year, Britain’s Financial Conduct Authority told banks to rethink moves to close branches during the pandemic lockdown, fearing it could be to the detriment of customers.

Virgin said the closures would trigger a restructuring charge of £25 million in the fourth quarter. It will also book a £20 million charge from cutting back and modifying its office space. The bank said its restructuring charges for 2021 as a whole will now be £145 million in total. – Reuters

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