Virgin Money has announced the closure of nearly 40 branches operating across the UK. The closure of these branches comes when fewer people rely on using physical banks to complete transactions.

Virgin Money plans to close 30% of bank branches

People have been switching from using physical banks to relying on digital platforms to handle transactions. As such, banks are being forced to make a change by choosing to close physical branches, and instead, they are relying on online platforms.

The company noted that it had assessed the different ways that customers used stores, online, mobile, and telephone channels. It said that a total of 39 branches had ceased trading and would no longer be operational as part of a cost-cutting measure announced by the company.

The move comes when the number of customers relying on bank branches to handle financial transactions has been dropping in recent years. An increasing number of physical bank branches have been closing, with transactions conducted using these platforms dropping by 43% since March 2020.

Besides a drop in the number of customers, physical bank branches have also seen a drop in the number of transactions. 96% of the customers on these banking platforms transact less than once monthly on average.

Banks usually plan on having a store in a particular location based on several factors, such as the potential number of customers. Each branch closed by Virgin Money was assessed depending on the transaction volumes and the customers in that area.

The Chief Operating Officer at Virgin Money, Sarah Wilkinson, noted that “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.”

Bank to ensure closure is done smoothly

Virgin Monet is planning to work with customers to enable smooth transactions, especially for customers. Customer care staff will reach out to vulnerable customers to guarantee that they have ample support to meet their banking requirements.

A wide range of support services will be made available before the store closures, such as the digital workshops used to help customers become comfortable with digital banking services. Post Office pop-up sessions will also boost customers’ knowledge on the currently available services.

For every store that will be closed, the customers will obtain a notification, with posters being displayed in these stores at least two weeks before the official close. The posters will also give these customers more details on how they can continue accessing their accounts after the closure.

Virgin Money will continue supporting the employees affected by the closure, with some of them being absorbed into alternative roles at the institution. These employees might be absorbed in other stores or roles when possible.