By Rachael McMenemy and Mariam Issimdar
TSB is to close 164 branches - a third - and cut about 900 jobs.
A "significant change in customer behaviour" and increased online banking drove the decision, the bank said.
The closure of the Chillingham Road branch in Newcastle was already announced. Hide Hill, Berwick will shut in March, St John Precinct, Hebburn and Blackhills Road, Horden in February, and High Street, Durham in May.
Campaign groups which said older and vulnerable customers would be hit hardest but the bank said the closures were not an "easy decision" and had been accelerated by the Covid pandemic.Copyright: Getty Images
By Kevin Peachey
Personal finance reporter
BBC Radio 5 Live
Wake Up to Money
Banks have been criticised by firms and MPs for insisting on personal guarantees to issue government-backed emergency loans to business owners.
It means that the banks can go after the personal property of the owner of a firm if their business goes under and they cannot afford to pay off the debt.
Debbie Crosbie, chief executive of TSB Bank, told the BBC’s Wake Up to Money that it was in the process of finalising what business interruption loans it will offer.
She added that it was unlikely TSB bank would look at personal guarantees because the level of its lending is generally lower than other High Street banks.
“In TSB, the large majority of our 100,000 business customers are sole traders - very small companies, people who work in the gig economy, which is why we’ve really focussed on the smaller end of that support.”
She said that the coronavirus had been "extremely challenging, but banks are trying their best to respond."
By Magnus Bennett
BBC Scotland News
BBC Radio 5 Live
Over the last year, there has been an 18% increase in digital transaction by TSB customers, says chief executive Debbie Crosbie.
Unlike other banks, she says that TSB offers a no-quibble full fraud refund guarantee for both personal and business customers.
But isn't that expensive?
"What we're finding is the additional cost of doing this is actually less than you would think," Ms Crosbie tells Wake Up to Money.
"One of the things I've found really interesting about this debate is that people said to me 'aren't people going to get complacent if you offer this guarantee?'. Absolutely not. People take their financial security really seriously.
"So while there is, no doubt, a little more cost for us we actually save a huge amount in administration costs that a lot of banks bear because they do so much questioning of customers."
BBC Radio 5 LiveCopyright: Getty Images
Remember the IT meltdown at TSB Bank?
Well, its chief executive Debbie Crosbie is keen to move on but she tells Wake Up to Money what it was like when she took over running the bank from Paul Pester.
"Unbelievably, it is two years nearly since that happened to TSB and I joined the bank at the beginning of May which is eight months ago," she says.
"I was already very impressed that a large majority of those issues were well behind the bank but what was unquestionably my focus was restoring reputation and giving our customers and our staff a reason to believe again.
"We've worked really hard to make sure we're doing all the things our customers have told us they want."
By Andrew Black
Business presenter, BBC Good Morning Scotland
- Copyright: Getty Images
TSB has pushed back its target for about half of its senior jobs to be held by women by up to five years.
The bank had originally pledged to meet the target by next year, but it now says it should do so before 2025.
In fact, TSB has moved further from its target as it had 41% of women in senior roles in 2017, but only 38% this year.
The bank has, however, beatenthe government's target for 33% of boards to be made up of women"with a board that is 36% female".
BBC Radio 4Copyright: Getty Images
It would be hard for TSB to get out of its current crisis by being sold, former board member Philip Augar has said.
The bank announced on Monday that it is closing 82 branches as part of cost-cutting procedures.
The bank is owned by Spanish bank Sabadell and Mr Augar told the Today programme: "The question is who do they sell to. Even after all this work and a three-year recovery programme and redesigning the structure of the business - the return on capital from the business is only 7%, which is half what the big banks are making and doesn’t really cover the cost of capital in the first place.
"The business consists of original TSB branches, some Cheltenham and Gloucester Building Society branches and some Lloyds branches in Scotland.
"There’s an overlap of branches and some of them are in the wrong place and some are in not very suitable premises.
"The consequence of all this is that their costs are too high and they are overbranched relative to other banks. Kind of compounding that, income is too low so they’re actually in a difficult position, but actually they do have to have to something."
BBC personal finance correspondent
The humiliation of last year's catastrophic breakdown has forced TSB to abandon grandiose promises.
When it was hived off from Lloyds six years ago, it pledged to be a bank you could trust, without the "funny stuff" that tainted other scandal-ridden banks.
It wowed people with a current account paying 5% interest.
Its then chief executive, Paul Pester, attacked rivals for "savagely cutting branches" and made a firm commitment to his outlets, promising to expand the network.
The IT failure knocked a deep dent in customer trust, and then TSB cut its flagship interest rate.
And now Debbie Crosbie, the boss brought in to steady the ship, is targeting branches.
It is true that the rise of the internet is forcing the industry to change.
But that's the point. TSB promised it would be something different. Now we see it is just another bank.
- Copyright: Getty Images
Age UK's Caroline Abrahams hasn't minced her words when responding to the news that TSB is shutting 82 branches.
“This is another kick in the teeth for many older customers who are not online or confident with digital banking and who rely on their local branch to meet their banking need," she said.
It is frankly unacceptable that banks are continuing to shut local branches and withdraw essential services before putting in place alternative solutions to meet the needs of their older customers, particularly those in rural and semi-rural areas.
"All older customers have the right to access their cash and make and receive payments in a way that is safe, convenient and affordable."