The transformation of the traditional banking sector is known to all of us. However, we rarely see this speed in practice. Which is exactly why Virgin Money’s latest move is noteworthy. The British financial institution recently announced that it would liquidate more than a third of its branch network, which would involve dismissing 260 people from the workforce.
The measure is part of a general trend in the British banking system, as the country’s largest banks are downsizing their branch networks. And in the past few years alone, since 2015, more than 6,000 bank branches have closed.
Virgin Money cites as a justification for its decision that the number of transactions across branches is constantly decreasing. According to their data, the number of daily transactions in branches has been showing a downward trend for years. It was noted that the activity of customer transactions in the branches scheduled to be closed decreased by 43 percent. The most surprising number is that 96% of the customer base does not visit branches once a month or even that often.
Virgo money is current closures As a result, it will only operate 91 branches in the UK.
The union of workers in the banking sector criticized Virgin Money’s decision. Sharon Graham, president of the trade union, has also voiced her position: She believes that, in addition to impressive profits, banks should take on more responsibility towards their customers and their communities. According to Graham, people have a basic right to access banking services and cash, and branch closures will be felt most by customers struggling to keep up with digital change.
In response to these concerns, Virgin Money has indicated that all branches scheduled to close are located near the nearest post office, so that customers can still access cash and make transactions. The bank’s decision clearly shows the new direction of banking in the digital age, where traditional branches are increasingly being replaced by online and mobile banking solutions.
(Source: Fintech.hu)
(Cover photo: Depositphotos)
