Yorkshire Bank committed to ongoing move towards digital
Lender will not rule out more closures
THE OWNER of Yorkshire Bank said it is continuing to move towards digitisation and has not ruled out closing further branches in the future.
CYBG, which also owns Clydesdale Bank, will next month close the last of the 79 branches, it said it would shut earlier this year.
Gavin Opperman, customer banking director, told The Yorkshire Post: “We as a firm are definitely moving towards digitisation of the bank.”
However, he added that some customers “are not technologically savvy” and that the bank needed to appreciate this fact.
Mr Opperman said: “Will we have any further closures? If the timing is right, if it makes business sense, it’s good for our customers and our customers aren’t using that branch any longer then we obviously have to continue on that trend.”
The lender reported a 15 per cent rise in underlying pre-tax profits. Profits rose to £123m in the six months ended March 31 from £107m, boosted by a 5 per cent growth in annualised mortgages. Current account balances rose by 4.5 per cent in the halfyear.
Ian Smith, chief financial officer of CYBG, said the business was “pleased” with the performance in the period.
“Mortgages are growing at five per cent per year and SMEs are growing at 3 per cent per year at the moment,”
He added that CYBG was making “a significant investment” in its digital capability, an important development for its customers.
Mr Smith said: “We’re committed to what we call omnichannel, which means customers can choose from a range of different ways to do their banking business.
“If people want to use branches we still have a strong and vibrant branch network. It may be that customers have to travel a little further than they were accustomed to but we still have a very strong branch presence.”
CYBG customers can also use the Post Office for everyday transactions and the bank says it is leaving ATM capabilities where there are closures.
The lender admits that certain areas lack the necessary connectivity and that work needs to be done on that front.
More work needs to be done to educate older people, who are less likely to bank online, when it comes to the use of technology.
Mr Opperman said: “There are many senior citizens that are very digital savvy when it comes to the usage of technology and some of them actually prefer not to even use the branches.
“But generally it is correct that there’s a lot of work that needs to be done in terms of informing them because they don’t have smartphones, they don’t use tablets and computers.”
Cyber security has hit the headlines in recent days with the NHS suffering from a ransomware attack.
Mr Smith said: “We take cyber security very seriously as you’d expect because one of the things that is important to us is customer trust.
“We invest a great deal of money in cyber security and we have a good track record so far in defending our bank and our customers against cyber attacks. We’re not complacent on this at all. It will be one of our highest priorities going forward.”
He added that the ransomware attack on the NHS will cause people to stop and think and that there’s a role for everyone, including businesses and the Government, to play in teaching people how to be more careful.
CYBG said that Yorkshire remains a key heartland for the lender and the lender is focusing on growth in the region.
We’re committed to what we call omnichannel. Ian Smith, chief financial officer of CYBG
FIRST THE good news. Enduring loyalty towards Yorkshire Bank, one of this region’s most trusted institutions, has seen its parent company record a 15 per cent rise in half-year profits.
Now the bad news. Despite recognition that not all customers are techsavvy, further branch closures cannot be ruled out due to the digitalisation of banking.
Ominous words for those who value a personal banking service, not least its trustworthiness and security at a time when the issue of cyber security has never been more important, it’s further reason why the Government, and financial sector, should implement The Yorkshire Post’s call for tighter rules governing the closure of local branches.
When branches are shut down, some cashpoints are also being withdrawn making it harder for customers, and the less mobile in particular, to access their money. It’s quite simple – no closure should be sanctioned until alternative provision, guaranteed for five years minimum, is in place.