Royal Bank of Scotland PLC (LON:RBS) is to cut a further 259 branches and shed 680 jobs as its move online steps up a gear.
The closures follow the shutting of 180 outlets earlier in the year, in what is shaping to be a record year for branch closures among all of the UK banks.
READ: Royal Bank of Scotland facing US$11bn mortgage fine says HSBC
Lloyds announced only on Wednesday it would shut 49 of its branches.
Jane Howard, RBS’ s head of branch banking said more customers were using its online and mobile services and the bank had to respond.
The bank, which is still more than 70% owned by the UK public following its rescue in 2008, will have 744 branches after these latest closures, which will affect all parts of the country.
Smartphones drive growth in online banking
"The rise of the smartphone is creating serious disruption across a number of industries, and bank branches across the country are under continual threat as more and more customers transact digitally, rather than on the high street," said Laith Khalaf, senior analyst at Hargreaves Lansdown.
"There is of course a significant cost to this transition in terms of the jobs of front line branch staff, and also potential detriment for those customers who still rely on their bank branch and may now face long journeys to conduct their normal banking business."
Fine from US Department of Justice still pending
Hopes that RBS might move in to the black this year were boosted following a stronger-than-expected operating profit as restructuring costs eased.
Though pre-tax profit this year will be affected by a huge fine from the US Department of Justice for mortgage mis-selling.
Analysts estimate the settlement might be anything from US$5bn to US$11bn, with the expectation that the final amount will be agreed before the end of the year.
Government to cut stake in RBS
Chancellor Phlip Hammond last week said the government would begin the process of cutting its stake in the lender but it is expected to be sold at a loss.
"We now know the Chancellor is gearing up to sell RBS in the coming years, and barring a miraculous share price recovery that’s going to leave the taxpayer nursing billions of pounds of losses on the bailout," said Khalaf.