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| Natwest to cut 550 jobs in branches and close one office | Natwest to cut 550 jobs in branches and close one office |
| (about 1 hour later) | |
| Natwest is cutting 550 jobs in branches across the UK and closing one of its remaining offices in London. | Natwest is cutting 550 jobs in branches across the UK and closing one of its remaining offices in London. |
| It said the cuts would be made entirely through voluntary redundancies and there would be no branch closures. | It said the cuts would be made entirely through voluntary redundancies and there would be no branch closures. |
| The job losses are part of a cost-cutting drive as the lender tries to adapt to more people banking online. | The job losses are part of a cost-cutting drive as the lender tries to adapt to more people banking online. |
| The trend has accelerated during the coronavirus pandemic as people have stayed away from high streets and used physical branches less. | The trend has accelerated during the coronavirus pandemic as people have stayed away from high streets and used physical branches less. |
| A NatWest spokesperson said: "We have to respond to changing customer behaviour and the rising customer demand for digital banking services. | A NatWest spokesperson said: "We have to respond to changing customer behaviour and the rising customer demand for digital banking services. |
| "We have taken the decision to invite applications for voluntary redundancy and will support those colleagues who apply with a comprehensive support package." | "We have taken the decision to invite applications for voluntary redundancy and will support those colleagues who apply with a comprehensive support package." |
| The banking group, which is part of Natwest group, formerly known as RBS, said the cuts had been on the cards before the pandemic as it had seen a steady decline in branch transactions in recent years. | |
| It has also been trying to achieve £250m of cost savings to make itself more competitive. | It has also been trying to achieve £250m of cost savings to make itself more competitive. |
| However, Covid-19 has accelerated the shift away from people banking in branches, putting pressure on already struggling lenders. | However, Covid-19 has accelerated the shift away from people banking in branches, putting pressure on already struggling lenders. |
| Before lockdown restrictions were eased, many branches reduced their opening hours, while some shut temporarily due to staffing issues. | |
| Branch woes | |
| Like other lenders, Natwest group has also been pressing ahead with cost-cutting in anticipation of people defaulting on loans due to the pandemic. | |
| The group said in July that it expected to set aside between £3.5bn and £4.5bn for the whole of 2020 to deal with the economic consequences of the pandemic. | |
| Other lenders have been scaling back as they try to adapt to the shift to online banking. | |
| Earlier this year, Lloyds Banking Group announced 56 further branch closures, blaming "changing customer behaviour". In 2019, rival TSB identified 82 branches it planned to close. | |
| According to Which?, at least 3,383 bank branches closed in the five years to January 2020, shrinking the network by 34%. |