Citywire printed articles sponsored by:
View the article online at http://citywire.co.uk/wealth-manager/article/a714134
Co-op Bank to axe 15% of branches; job cuts expected
by Dylan Lobo on Nov 04, 2013 at 07:54
The Co-operative Bank has unveiled plans to cut its branch network by 15% as part of its rescue plan.
The Co-op Bank said it planned to complete this by the end of next year as it focuses on its digital channels. The move is expected to see around 1,000 of its 10,000-strong workforce lose their jobs, according to reports.
The Co-op revealed its restructure plans today, and while announcing cuts to its branch network, did not confirm reports of job reductions.
It said: 'In line with customer demand and developments in the UK retail banking market, the bank, in partnership with an established digital provider, will seek to significantly enhance its digital and self-service channels to allow its customers to access its products and services when and where they choose.
‘It is expected that over time digital channels will be customers' preferred point of contact. These enhancements are intended to allow the bank to reduce its call centre and branch footprint whilst maintaining its market-leading levels of customer service. Between 30 June 2013 and the end of 2014, the bank expects to significantly rationalise its branch network by at least 15%.
In added that the full integration of Britannia will remove existing duplication in the bank's branch network, while it also intends to close certain non-profitable branches.
Under the rescue plan six hedge funds who will own around 70% of the bank with parent Co-op Group owning the remainder. The bank was forced to come up with a plan after a £1.5 billion black hole was discovered in its balance sheet.
Co-op Bank chief executive Niall Brooker said: 'Today's announcement marks a major step forward for the Co-operative Bank.'
News sponsored by:
Today's top headlines
More about this:
On the road
by Robert St George on Dec 05, 2013 at 11:25