Barclays Bank deny plans for major cuts to branches

Barclays denied it was planning a significant reduction to its branch network last night, amid speculation that up to a quarter of its 1,600 UK sites could close

Barclays Bank
Barclays Bank

Barclays denied it was planning a significant reduction to its branch network last night, amid speculation that up to a quarter of its 1,600 UK sites could close.

The bank admitted there will be fewer traditional branches in the future but said the network was still an important part of its service.

According to yesterday’s Financial Times, the bank is planning to replace around 400 branches with smaller sites in Asda supermarkets.

Speculation over Barclays’ branches follows an announcement on Tuesday by Lloyds of 1,080 job losses across its retail, risk, operations and commercial banking divisions.

Barclays chief executive Antony Jenkins is leading an overhaul to improve results and repair its tarnished image following the group’s £290m fine for rigging the Libor rate.

A Barclays spokesman said: “We have no plans to announce significant reductions to our UK branch network. Increasing use of technology is changing the way in which customers choose to do their banking, and creates opportunities for Barclays to offer services in new ways, complementing the branch network.

“We have consistently been clear that, over time, there will be fewer traditional branches as we move to provide banking services to customers where and when they find it most convenient. However, the branch network will remain an important part of our banking service and we will never leave a community without the ability to transact.

“While it is inevitable that there will be speculation about how these changes will impact on the branch network, this will be driven by the needs of our customers and, therefore, there is not a target for a number of branches to be closed, nor a timeframe for such action.” The Unite union yesterday attacked the “reckless rush” to close branches, which it warned would be unpopular with customers.

The union published a survey earlier this week which showed public opposition to automation in bank branches, with consumers preferring to deal with staff.

Dominic Hook, Unite national officer, said: “The banking industry must step back from the rush to install banking machines across all their branches at the continued expense of employment and training of a much-valued workforce.

“There are serious questions as to what this reduction in staff numbers will do to customer service in Barclays.” Mr Jenkins will set out new financial targets when he presents the bank’s results on February 11.

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