Following a review of its branch network, Royal Bank of Scotland has announced that it will be closing 162 branches, making 792 employee roles redundant.

The bank revealed that plans to divest RBS in England and Wales and NatWest in Scotland and launch a separate challenger bank - under the brand name Williams & Glyn - have been cancelled. The business, including its branch network, is now being reintegrated back into the core bank.

“We are no longer launching Williams & Glyn as a challenger bank, and we now have two branch networks operating in close proximity to each other; NatWest and Royal Bank of Scotland, in England & Wales,” said an RBS spokesperson.

“As a result we have had to review our overall branch footprint in England and Wales and we’ve made the difficult decision to close a number of Royal Bank of Scotland branches. Customers of Royal Bank of Scotland in England & Wales will be able to use NatWest branches instead for their everyday banking needs.”

The bank noted that the changing nature of customer behaviour has played a role in the decision. Since 2014, branch transactions across Royal Bank of Scotland in England & Wales are down 30 per cent, while in the same period, there has been a 53 per cent increase in the number of customers using mobile banking and mobile transactions have increased by 74 per cent.

RBS has also created a specialist taskforce of ‘TechXperts’, dedicated to providing customers with training and support with digital skills.

Nicky Morgan, chair of the Treasury Select Committee, commented: "As a result of RBS’ decision, there is a risk of increased levels of financial exclusion."

She said the government would monitor this trend, and if financial exclusion is increasing, it may be required to intervene.

Tim Dimond-Brown, vice president of sales and operations at Quadient, noted that the RBS’ branch closures follow similar news from Halifax and Lloyds. "With customer behaviour changing, and more transactions moving online, these closures mirror the current evolution of High Street banking.

"However, banks need to be make sure that the shift to online banking doesn’t leave customers behind. The banks that can reassure and communicate with customers in the right way will have a significant advantage over those that don’t, emerging with happier, more loyal customers," he concluded.

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