British banking group HSBC is set to shut down 117 branches and shed 380 jobs in the UK in 2017 in response to increasing adoption of digital banking channels by customers.

The branch closures will lead to the loss of 176 jobs. The layoffs include 204 IT jobs in the UK that will be axed as majority of the roles are being offshored to India, China and Poland.

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The latest move will bring down the bank’s number of UK branches to 625 by the end of this year.

HSBC head of retail banking and wealth management for UK and Europe Francesca McDonagh said: “More than 90% of our interactions with customers are now through our digital channels – an increase from 80% last year.

“The decision to close these branches ensures a more sustainable branch network for the future as we continue to invest in our digital platforms and our people. We will have fewer but better branches, with more empowered front-line colleagues using a greater range of technology to support all our customers’ needs.”

Union Unite has termed the move as “a dark day for hundreds of HSBC staff”.

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“Without doubt customer service in financial services will suffer if our high streets are left with no local branches. The banking industry must act to prevent confidence in our banking system falling further,” Unite said.