HSBC plans to close 117 branches by the end of 2017 as customers increasingly do more transactions online. 380 jobs will be moved from Britain to reduce costs: 180 branch related positions and 200 information technology jobs.
Unite trade union officer Dominic Hooks said:”Today is a dark day for hundreds of HSBC staff… Unite is deeply concerned that this large branch closure programme will be devastating not only for staff but also for the loyal HSBC customers.”
Banks argue that the conviniency of online transactions has reduced the need for expensive branch networks, with HSBC claiming a drop of 40% in branch visits over the last 5 years.
Critics argue this worsens the case for elderly and low income customers
Reuters revealed in 2016 that banks are disproportionately closing branches in the lowest-income areas while expanding in wealthier ones. http://uk.reuters.com/article/uk-britain-banks-branches-idUKKCN0Z60BP
The British Bankers’ Association announced on Tuesday a new plan that will allow more customers to do banking at the post office as lenders step up their closures.
HSBC and Swiss bank UBS have both also announced over 1000 potential job moves from the UK after brexit at the World Economic Forum in Davos.
“We will move in about two years’ time when Brexit becomes effective,” chief executive Stuart Gulliver said. He added that HSBC’s aquisition of Credit Commercial de France will soften the transition to Paris.
“Activities covered specifically by European financial regulation will need to move; looking at our own numbers, that’s about 20% of the revenue,” Mr Gulliver told Bloomberg Television.
German paperr Handelsblatt also reported Goldman Sachs is considering halving its London workforce to 3000 and concentrating efforts in New York and Frankfurt.
Reasons for the move include the potential loss of “passport” rights to sell financial services in Europe’s single market. Delays in the Brexit process could further increase uncertainty for the sector.
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