Virgin Money, the high street bank, has recently revealed its plans to close a number of its high street branches, almost a third of its current network.
The announcement, made on Thursday, July 20th, has sent ripples through the banking community, with 255 employees facing potential redundancies as a result of the planned closures.
In a statement, Virgin Money cited “changing customer demand” as the primary reason for its decision, acknowledging that some of its staff members would be at risk of redundancy. Despite this, the bank expressed its intention to try and redeploy some of those affected to alternative roles within the organization.
According to the bank’s statement, each of the affected branches set for closure is situated less than half a mile away from the nearest Post Office. Virgin Money customers will still have access to a limited banking service at these Post Office branches, thanks to a deal struck in 2015 to mitigate the impact of branch closures.
The list of 39 sites earmarked for closure includes locations across the country, affecting customers and employees in various regions:
- Belfast
- Chelmsford
- Enfield
- Hexham
- London Haymarket
- St Albans
- Bournemouth
- Cheltenham
- Exeter
- Irvine
- Milton Keynes
- Swindon
- Brighton
- Chester
- Fort William
- Kendall
- Newton Stewart
- Turrif
- Bristol
- Croydon
- Golders Green
- Kensington
- Norwich
- Wolverhampton
- Bromley
- Derby
- Gosforth Centre
- Kingston
- Oxford
- Cambridge
- Durham
- Guildford
- Liverpool
- Reading
- Cardiff
- Ellon
- Harrow
- Lochgilphead
This move by Virgin Money signals a significant shift in the banking landscape, with branch closures becoming a common occurrence as customers increasingly turn to digital and online banking options. The bank’s emphasis on the proximity of affected branches to nearby Post Office facilities demonstrates an effort to provide continued banking accessibility to its customer base despite the closures.
As the redundancies loom and the impacted communities brace for change, it remains to be seen how the banking industry will adapt to the evolving needs of its customers. With increasing reliance on technology and digital services, high street banks are facing the challenge of striking the right balance between convenience and maintaining a physical presence for those who still value face-to-face banking services.
Sarah Wilkinson, chief operating officer at Virgin Money, said: “The decision to close a store is never taken lightly. But as our customers continue to change the way they want to bank with us, by conducting fewer transactions in-store and adopting the convenience of digital banking, we must respond to that evolving demand.
“Our focus is on supporting our customers and colleagues. We have considered the number of vulnerable customers using each store very carefully throughout the review process as a key factor in our decision making, and will proactively provide enhanced, bespoke care to ensure any vulnerable customers affected are supported through the changes.”
Virgin Money’s decision to close these 39 branches serves as a reminder of the wider transformation within the banking sector. As the landscape continues to evolve, it is imperative for financial institutions to remain agile and responsive to changing customer preferences while ensuring that the needs of both employees and customers are met during this period of transition.
