Clydesdale Yorkshire Bank Group (CYBG) has announced the next stage of its integration programme, as it transitions towards using the single Virgin Money brand by 2021.

The gradual rebrand process will begin with the B digital banking service changing to Virgin Money by the end of 2019, enabling the group to offer customers the first Virgin Money branded, digitally-enabled current account.

The account is based on the B technology platform and will offer money management tools and a linked savings product. During 2020, an “enhanced personal current account relationship proposition” will be introduced, a new business current account launched and the rebranding of Yorkshire Bank and Clydesdale Bank will begin.

In December, the Virgin Money brand will open ‘megastores’ in Manchester, Birmingham and Kensington, attempting to reimagine the role of a bank on the high street, offering co-working, advice and mentoring for entrepreneurs in partnership with other Virgin companies. The concept will be rolled out to other flagship locations over time.

CYBG chief executive David Duffy stated: “These will be the first visible steps to creating a new force in consumer and business banking and over time we will evolve our offering to include a Virgin-focussed rewards programme with unique offers and personalised benefits only available to Virgin Money customers.”

Today’s announcement includes plans to rationalise some of the group’s corporate property portfolio over the next two years, as well as the next stage in the restructuring of the business, including the removal of some roles as part of the planned integration announced during the acquisition of Virgin Money by CYBG in 2018.

The personnel restructure is designed to simplify structures, reduce duplication and clarify accountabilities across business areas.

Impacted teams across the UK include brand and marketing, retail distribution, chief operating office, risk and mortgages – the latter of which is moving to the Virgin Money operating model of providing mortgage advice by telephone and online.

As a result of the changes above, a number of roles are at risk of redundancy and colleagues will be supported through the bank’s redeployment process, with the aim of minimising compulsory redundancies wherever possible.

A reduction of around 330 full time equivalent roles is anticipated as a result of these changes, with forecasted reductions of circa 16 per cent of jobs across the group.

While CYBG will maintain a strong presence in Edinburgh, Leeds and Norwich, the group plans to exit some existing functional offices in those cities, transferring some roles into other sites.

Following “a comprehensive review of its geographical footprint”, the group’s long-term corporate locations will be focussed around two major hubs in Glasgow and Gosforth, supported by a regional presence in Chester, Edinburgh, Leeds and London.

Virgin Money’s St Andrew Square office in Edinburgh is expected to close by the end of 2019, with staff relocating to CYBG’s existing office and branch on nearby on George Street. Virgin Money’s flagship St Andrew Square lounge will remain open for customers.

Virgin Money’s Discovery House in Norwich is expected to close by the end of October 2020, with roles transferring to other locations, with the exception of Virgin Money Giving, which will continue to operate from Norwich, but will eventually move to a new location within the city.

Yorkshire Bank’s Merrion Way office in Leeds is expected to close by September 2021, with the group consolidating its functional corporate office into its flagship store and corporate office on Briggate in Leeds city centre, which will over time transition to the Virgin Money brand.

Duffy explained: “Detailed planning is in place to ensure that the bank is able to safely transfer operations to the major hubs over time, while continuing to provide the same great service for our customers every day.

“We recognise that some exit dates are quite far in the future, however, we want to be open with colleagues and give them clarity on changes as soon as possible,” he added.

Share Story: