Soci?t? G?n?rale Accelerates Digital Transformation... Plans to Close 600 Branches in France

Cost Reduction of 450 Million Euros by 2025

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] French major bank Societe Generale has accelerated its digital transformation due to the COVID-19 pandemic, announcing plans to close 600 branches in France and reduce costs by 450 million euros (approximately 590 billion KRW).

According to major foreign media on the 7th (local time), Societe Generale stated in a press release that it will merge its main retail banking subsidiary, Credit du Nord, as part of a cost-cutting measure of 450 million euros by 2025. Through this, the number of branches, currently at 2,100, will be reduced to 1,500 by the end of 2025.

This decision came as financial consumers increased their use of digital banking during lockdowns across most parts of Europe due to COVID-19. As demand for branches declined, banks accelerated the transition to digital banking more than initially expected. Societe Generale announced that it plans to increase its digital banking customers from the current level of 2.5 million to 4.5 million by 2025.

This is not the first large-scale branch closure by Societe Generale. In 2015, it closed 390 out of 2,186 branches at that time. However, it appears the bank has decided to reduce the number further. Foreign media reported that the bank stated these branch closures will not lead to employee layoffs.

This content was produced with the assistance of AI translation services.