In a recent announcement, Virgin Money, a prominent lender, has revealed plans to shut down almost a third of its branch network, citing “changing customer demand” as the primary reason for the decision. While the lender hopes to redeploy some affected staff, it has admitted that some jobs might be at risk of redundancy.
The Unite union has expressed concerns that up to 260 jobs could be lost due to the branch closures. This move by Virgin Money is part of the ongoing trend in the industry, where high street lenders have been closing branches to implement cost-cutting measures since the financial crisis. The rise of online and mobile banking services has been widely cited as the driving force behind reduced demand for traditional branch services.
Once the closure program is completed, Virgin Money will be left with only 91 sites, and the 39 sites that are affected by the closures include locations in Belfast, Chelmsford, Enfield, Hexham, and several others.
Virgin Money has assured that each store was assessed individually, taking into consideration the impact on the local area, the needs of vulnerable customers, and the accessibility of alternative services such as free-to-use ATMs and Post Offices. The company stated that every closing store is within a half-mile radius of the nearest Post Office, where customers can carry out various transactions, including cash deposits and withdrawals, cheque deposits, and balance inquiries.
Sarah Wilkinson, the chief operating officer at Virgin Money, acknowledged that the decision to close a store is not taken lightly. However, with customers increasingly opting for digital banking and conducting fewer transactions in-store, the lender is adapting to meet evolving demands. The company is committed to supporting its customers and colleagues through the transition. For vulnerable customers affected by the closures, Virgin Money will provide enhanced, bespoke care.
Unite, the national union, has expressed concern for the staff affected by these closures and has urged the bank to reconsider its decision. The union emphasized that these closures would negatively impact vulnerable, disabled, and digitally excluded customers who heavily rely on the expertise of experienced banking staff.
The closure of over 6,000 bank branches since 2015 has raised concerns about access to cash and has led to calls for the City watchdog to ensure that communities are not financially cut off. Virgin Money’s announcement came ahead of the implementation of new consumer duty rules on July 31, aiming to raise the standard for consumer protection in financial services.
The 39 sites affected are as follows:
• Belfast
• Chelmsford
• Enfield
• Hexham
• London Haymarket
• St Albans
• Bournemouth
• Cheltenham
• Exeter
• Irvine
• Milton Keynes
• Swindon
• Brighton
• Chester
• Fort William
• Kendall
• Newton Stewart
• Turrif
• Bristol
• Croydon
• Golders Green
• Kensington
• Norwich
• Wolverhampton
• Bromley
• Derby
• Gosforth Centre
• Kingston
• Oxford
• Cambridge
• Durham
• Guildford
• Liverpool
• Reading
• Cardiff
• Ellon
• Harrow
• Lochgilphead
