Banco de Chile plans to close 33 branches in 2019 as the company ramps up its digital transformation efforts, Diario Financiero reported, citing an anonymous executive from the bank.
The planned closures account for roughly 9% of the bank's branch network in Chile and will mainly affect the company's Banco CrediChile consumer banking division. Meanwhile, an additional 13 CrediChile branches will be merged with other bank branches, according to the report.
Banco de Chile has been pilot testing its digital transformation strategy at 16 branches and plans to roll new branch models out across its network this year and through 2020.
According to the newspaper, the revamped branches will have new self-service machines that will improve functionality without requiring support from employees.
As part of the push, Banco de Chile has met with labor unions to inform them that most employees will be retained, while those that do not fit into the new structure will be offered retirement packages. The bank is reportedly working to minimize the amount of dismissals.
About 72% of the company's planned 2019 investments in branches will focus on information technology, while the remaining 28% will be geared toward physical infrastructure, Diario Financiero reported.
