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Banking giants will close more than 400 branches and release 10% of their workers

Itau Unibanco – the name given to the Brazilian banking institution, which in Chile absorbs the Corpbanca operation – has initiated a plan to close up to 400 branches in Brazil.

The largest bank in the country reacts, as all banks, to the strong migration of customers to the electronic segment.

The information is about eliminating nearly 10% of nearly 4,200 points in the Brazilian bank. According to sources quoted by Reutersthe change can take place in two stages, the first one meaning halving in the next 12 months and the remainder next year.

"The movement of agencies is decreasing and the competitive scenario is changing rapidly," one of the sources said, referring to more recent competitors, such as fintechs and payment agreements.

The Brazilians are not the only ones.

In Europe, Spanish banking has closed nearly 1,000 branches and freed more than 2300 workers, all in the midst of withdrawing customers from physical care channels. CaixaBank, the company with the largest office in Spain (4,537), plans to cancel 821 branches by 2021.

Santander offers more than 3,000 redundancies

Spanish giant Santander, also operating in Chile, offered an 11% reduction in its workforce in Spain.

As reported BloombergThe Spanish financial institution informs the trade unions that the measure will include the elimination of 3,700 jobs and the closure of 1150 branches, according to a statement released Tuesday by the CCOO Union. Most redundancies will be made in commercial branches, although some jobs in the plant will also be affected.

"It is very worrying that such a large number of lost jobs," criticized the alliance, which represents the workers of the bank, in the statement. "That's why our first goal will be to try to reduce the figures raised by the bank."

The measure is part of a global plan aimed at reducing annual spending by € 1,200 million ($ 1,400 million) while the bank is looking for ways to counter a low-interest environment that undermines European revenues. Santander is under pressure from investors to strengthen their capital buffer, which is among the lowest of regional companies.

Spanish Department of Santander added 32,366 employees to 4366 branches at the end of March, according to the bank's first quarter.

As part of the cost-cutting initiative, the company plans to close 140 branches in the United Kingdom and remove 1400 jobs in Poland by cutting the workforce in that country by 11%.

Last October, Diario Financiero announced that mergers and acquisitions at local level also have an effect. Scotibank has set a real estate sale plan, which has led to the recent sale of a $ 35 million corporate center in Santiago, which has to add the sale of other real estate that can be purchased to collect these efficiencies, over $ 60 million.

As reported The third Last October, the combined bank plans to close about 40 branches after the merger with BBVA.

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