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Bank Austria to Close 67 Subsidiaries

Published: July 3, 2013; 16:56 · (Vindobona)

UniCredit Affiliate Bank Austria plans to close 67 subsidiaries – a quarter of its 270 stores for private costumers until 2015.

Bank Austria to Close 67 Subsidiaries / Picture: © Wikipedia / Werckmeister

Half of the affected branch banks of subcritical size will be merged with neighboring subsidiaries. The other half will become new self-service stores. In the 67 branch banks a total of 200 member of staff is employed, the majority of them in Vienna.

At the same time, internet banking will be enhanced to attract more costumers, particularly in the West of the country. The bank announced the the 200 jobs, which are concerned by the downsizing, have already been included in the redundancy plan where the number of employees is supposed to be decreased by 800 in Austria until 2015.

The affected employees of the branch banks are supposed to change to larger subsidiaries or to the new “smart-banking” units at the information centers. However, the bank intends to open new branch banks in Vienna. Bank Austria hopes for more cost efficiency by these measures.

Since less and less private bank clients come to the branch banks personally, a priority for the bank will be the upgrading of internetbanking. CEO Helmut Bernkopf announced additional investments in the amount of € 100m to realize the so-called “smart banking” model. The majority of the amount will be invested in modern technologies, extensive advising in clients via video conferencing, e-mail, etc. However, it was affirmed that Bank Austria will not become an online bank.

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