Four hundred jobs to go in Clydesdale and Yorkshire bank branch closures

The owner of Clydesdale and Yorkshire banks has announced it is shutting more than a third of its branches with the loss of 400 jobs.

It came on a gloomy day for smaller lenders as Airdrie Savings Bank, the UK's last remaining independent savings bank, said it was to close after 182 years - at the cost of 70 roles.

Each bank partly blamed changes in the sector, including a shift to online banking and away from using branches for day-to-day transactions.

The announcement from Clydesdale and Yorkshire Banking Group (CYBG (Frankfurt: 42YA.F - news) ) fleshed out the impact of a disclosure in September that it was to reduce its network of branches from 248 as it cuts costs.

It is closing 40 Clydesdale Bank branches and 39 Yorkshire Bank sites this year, with each business losing 200 jobs.

The group said it would try to redeploy affected staff.

It also plans to invest in digital innovation and invest in a "more sustainable branch network".

Gavin Opperman, customer banking director, said: "While the decision to close any branch is never an easy one, it is important that we, in line with other banks operating in the UK market, continue to respond to changes in the way customers bank with us."

The group has already cut branch numbers by a quarter since 2013.

Trade union Unite said the latest announcement was worrying both for employees and the communities they serve, with people left with less choice for local banking.

Meanwhile, Airdrie Savings Bank, founded in 1835, said it was to close its two branches, in Lanarkshire, in April.

Its head office in Airdrie will remain open as customers transfer money elsewhere.

It is understood to have about 10,000 current accounts and 30,000 deposit accounts.

Secured loans and mortgages will be transferred to TSB.

Chairman Jeremy Brettell said the bank was financially strong but that as a small bank it would not have "the resources in the years ahead to provide the products and services our customers need in this increasingly digital world".

Airdrie and Shotts MSP Alex Neil expressed his "deep sorrow" at the bank's demise.

The SNP politician said: "After the financial crash of 2008, it was probably for a while one of the few viable banks left in Britain."