The company said that the decision is in response to the changing customer behaviour during the pandemic, and to reduce its footprint and costs
Virgin Money branch in Briggate, Leeds, West Yorkshire. (Credit: Mtaylor848/Wikipedia.)
UK-based full-service digital bank Virgin Money has announced its plans to shut down 31 customer stores in the country, which represent one-fifth of its total 162 branches.
The move is in response to the changing customer behaviour during the pandemic, and a part of its efforts to reduce its footprint and costs, said the bank.
Also, the decision is based on various factors, such as location, usage, proximity to alternative stores and lease arrangements.
According to Virgin Money, the number of customers using bank branches for everyday transactions has declined across the UK for few years and is now boosted by the pandemic.
Virgin Money Group customer experience director Fergus Murphy said: “As our customers change the way they want to bank with us and conduct fewer transactions in-store, we must continue to evolve the role of our stores into places where we showcase our products and bring our digital services to life.”
Closure of the branches may lead to £25m restructuring costs for the company in the fourth quarter and is expected to affect 112 full-time jobs, reported Financial Times.
Virgin Money stated that each store was evaluated on an individual basis, on the basis of impact on the local area, needs of customers and access to alternative services.
Most of the customer stores to be closed are located less than a third of a mile away from the nearest Post Office, alternative stores, and ATMs.
The firm has teamed up with Post Offices to facilitate its customers’ daily banking needs, including cash deposits and withdrawals, cheque deposits and balance enquiries.
Virgin Money said that it will work with customers to support a smooth transition, especially where vulnerable customers are concerned.
Also, it will offer support services prior to store closures, including digital workshops to help customers become more comfortable with digital banking.
Closing of the customer stores is expected in early 2022, leaving Virgin Money with a network of 131 stores across the UK.