In an attempt to reduce the impact of the Brexit vote, Clydesdale Bank declared that it will slash more than £100m in costs in the next 3 years, including shutting down numerous branches across the country.
13 Sept 2016 – FT Adviser
The bank has promised the ‘digitisation’ of customer journeys by boosting branch automation and self-service, as it closes 50 branches.
It has been open about its efforts to court young people, and the move to online banking and the digitisation of services supports this new target group.
Its main customer base is currently older, less well-off people, and the report states how Clydesdale’s goal is to woo a more affluent demographic, and to create a network with national reach.
Currently the bank’s heartland is in Scotland, with a slow trickle of influence further south. The report details the bank’s hope that improving mobile services should make their client base less localised.
With these changes in place, Clydesdale hopes to make returns on equity of 10 per cent or more, planning to hit the target in 2019.
The report, released yesterday, has announced that “restructuring is already underway”.