TSB has announced that it will close 70 branches in the new year.

The move is in response to declining branch use and increasing numbers of customers switching to online banking.

In recent years, the bank said it has witnessed a significant slump in branch use, with the average number of transactions per branch dropping since January 2019.

TSB initially set out plans to reduce its branch network and invest in digital services two years ago, but the Covid-19 pandemic has accelerated this shift to online for the bank.

The bank explained that over 90 per cent of customer transactions are now carried out digitally, with video banking accounting for more than 90 per cent of mortgage appointments.

The branches that will close carry out around a third – 32 per cent – fewer transactions than the TSB national average.

The bank assured customers that there would be no closures where TSB is currently the “last branch in town.”

While there will be 150 fewer roles, all impacted staff will be offered alternative roles at TSB.

“Closing branches is an incredibly difficult decision to take, but we have to respond to the changes in the way people bank and provide the right mix of services for all our customers now and into the future,” said Robin Bulloch, chief customer officer, TSB. “These changes allow us to maintain an extensive branch presence across the country."

Bulloch added: “They are accompanied by a significant investment programme to upgrade branches to better suit customer needs. And, where it takes longer to get to the nearest branch, we will introduce more ‘pop-up’ services in communities.”

By the end of the year, TSB will have upgraded around 140 branches and has plans to add ten new pop-up services to its existing 41.

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