UAE bank to close 25% of branches next month
dubai — The National Bank of Ras AlKhaimah (RAK Bank) will shut down 9 branches from next month as demand for digital banking grows among the UAE residents.
The lender will close 6 branches in Dubai and one each in Sharjah, Khorfakkan and Abu Dhabi from September 3, 2020. In Dubai, branches in Al Ras, Mirdiff, Marina Diamond, Al Quoz Industrial, Dubai Investment Park and Jebel Ali Free Zone will be closed. While Sharjah’s industrial area and Abu Dhabi’s Al Jazeera branches will also be shut in September, it said in a statement sent to its customers.
Operating 36 branches across the country, the closure of 9 branches will reduce the lender’s network by 25 per cent.
Banks in the UAE have been reducing branches as customer footfall continues to drop, especially after the outbreak of coronavirus pandemic as more residents are opting for digital banking as a safety measures against the pandemic. The banks are also investing heavily in the development of digital infrastructure which also reduces cost for them.
The UAE’s national banks closed 16 branches in the first quarter of this year as the number of branches declined to 640 at the end of Q1 2020 as compared to 656 in Q4 2019. The number of bank branches in the country peaked in 2015 at 874 by both local and foreign banks.
In March 2019, Mashreq bank had announced plan to close 50 per cent branches last year and convert them traditional them in to digital branches.
RAK Bank said the customers’ IBAN and account details will remain unchanged they can visit any of its branches for banking transaction.
“We have increased the daily withdrawal and deposit limits across all our ATMs/EDMs to reduce your visits to our branches and urge you to use these channels,” the bank said in a statement sent to its customers.
The bank will also accept cheques through Drop Boxes available in all branch lobbies.