Clydesdale and Yorkshire Banks to close 28 "unsustainable" branches

Clydesdale and Yorkshire Banks will close 28 branches, while reshaping their retail banking operations.

Clydesdale Bank and Yorkshire Bank, both members of the National Australia Bank Group, have announced plans to close 28 “unsustainable branches” over the next nine months.

The banks have promised to invest £45 million in customer improvements during the same period.

Why is this happening?

The banks said they had seen a 30% drop in the use of their branches over the past three years. As a result, the decision was made to adjust the structure of their retail banking arms.

The plans will result in the closure of 28 branches, providing a £5 million saving. This money will then help fund the development of four new flagship branches in Glasgow and London, as well as offices in Aberdeen, Sheffield, Edinburgh and Leeds.

Chief executive David Thorburn said that the changes were “fundamentally necessary,” and that while “no branch closure is welcomed by customers or staff… we are working to minimise the effects these changes have on them.”

Thorborn argued that while the branch network remains at the core of the business's operations, it needed to balance that against investment in the services its customers are using more, such as online and mobile banking.

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Who will be affected?

The banks have said that they will not be recruiting new staff, but will look to distribute existing staff leaving closing branches among their new and busiest locations. £20 million will go towards improving mobile and internet banking under the plans.

The Clydesdale branches which will close before the end of the year are: Aberdeen Bridge of Don, Aberdeen Bucksburn, Aberdeen Woodside, Alford, Auchterarder, Blairgowrie, Bothwell, Bridge of Allan, Cupar, Edinburgh West End, Glasgow Govanhill, Haddington, Kinross, Kirkcaldy, Newport on Tay and Whitburn.

Reports suggest that the Yorkshire branches which are closing include Bingley, Bradford, Goldthorpe, Hull, Leeds Armley, Scunthorpe, Sheffield Haymarket, Sheffield Moor and Thirsk.

What do you think? How often do you use your local bank brach? Would it make much of a difference to you if it was closed?

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