Virgin Money is shutting almost a third of its bank branches, putting 255 staff at risk of redundancy.
The decision comes in response to changing customer preferences, with more people favoring online banking services over in-person visits to branches.
The 39 affected branches have witnessed a major decline in customer transactions, averaging a 43 percent decrease since the pandemic’s onset in March 2020.
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Virgin Money has closed the stores based on factors like footfall, transaction volumes, and the number of potentially vulnerable customers in each local area.
Each closing store is located half a mile from the nearest Post Office, aiming to minimize disruptions to customers’ access to banking services.
Sarah Wilkinson, chief operating officer at Virgin Money, said: “The decision to close a store is never taken lightly.
“But as our customers continue to change the way they want to bank with us, by conducting fewer transactions in-store and adopting the convenience of digital banking, we must respond to that evolving demand.
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“For our colleagues, we will pursue all options to retain as many as possible within alternative roles, and have had great success previously with store colleagues moving to other customer operations roles, as their skills are highly transferable.”
Virgin Money plans to notify impacted customers well in advance, sending out letters and displaying posters about the branch closures at least 12 weeks before the shutdowns.
After the closures, Virgin Money will operate 91 branches across the UK.
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Unite general secretary Sharon Graham said: “This announcement of the closure of 39 vital bank branches has sent shockwaves across the Virgin Money UK workforce.
“While the financial services sector is acquiring eye-watering profits, they must start taking their responsibilities to customers and communities more seriously.
“Access to a bank and cash is a fundamental need for all our local high streets.
“Simply walking away from the consumers who bring the banks astronomical profits is a complete disgrace.”
