home Finance Banque Populaire and Caisse d’Epargne will Close more than 400 Branches, 11,000 Job Losses

Banque Populaire and Caisse d’Epargne will Close more than 400 Branches, 11,000 Job Losses

BANKING: Groupe BPCE unveiled on Tuesday a plan of one billion euros in savings in its retail banking activity …

Cure austerity perspective within Groupe BPCE, which oversees the Banque Populaire and Caisse d’Epargne. The French banking giant unveiled on Tuesday a plan of one billion euros in savings in its retail banking business.

Combinations geographically close agencies

The second largest banking group in retail banking in France wants to reduce its network of agencies by at least 5%, which is “a little more than 400 branches,” according to the CEO, François Perol. They currently number 3,300 to 4,200 for Banque Populaire and Caisse d’Epargne.

The reduction in sales outlets network must be via groupings of geographically proximate agencies, particularly in urban areas.

In terms of employment, this will result in a decline in the number of employees: Perol expects 11,000 departures – retired or related to natural turnover – in the coming years within the Banque Populaire and caisses d’Epargne and replacement of just under two starts in three.

First fruits of the future strategic plan for 2018/2020

Tuesday’s announcements are the first fruits of the future strategic plan for 2018/2020, to be presented at the end of the year: “Our 2018/2020 strategic plan will enable us to seize the opportunity of the digital and better use of new technologies than our competitors, “said Mr. Perol, at a press conference.

The group wants to cut its spending mainly within BPCE, to 750 million euros, thanks in part to the streamlining of its organization and of its purchases.

This well will require a reduction of its regional banks, who will reduce to twelve for Banque Populaire (against five at present) and fourteen for Caisse d’Epargne (against 17 today).

As part of this roadmap, BPCE intends to use digital to improve its relationship with customers.

In this, it takes a turn similar to that of most of its competitors, who all emphasized this technological dimension for the coming years as customers come less into local branches.

Over the period 2017/2020, it will invest 750 million euros to accelerate its digital developments, the heart of which the young shoot Fidora, online bank acquired in 2016, must be central.

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