Brazilian lender Itau Unibanco Holding is reportedly planning to shutter nearly 400 branches across the country in two years.
The bank plans to axe the first 200 branches in the next 12 months, while the remaining will close subsequently, two sources familiar with the matter told Reuters.
Go deeper with GlobalData
Itau branch closures:
Itau’s move to trim its brick-and-mortar presence is primarily driven by increasing financial transactions through digital platforms.
The bank declined to confirm the move.
However in a statement it said: “The reduction of brick-and-mortar branches is a trend to adapt to the needs of clients and demand for digital services.”
The Brazilian lender also did not provide any details about the future of the employees to be affected due to planned branch closures.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataSome of the staff may be absorbed by the bank’s digital branching network, the report added.
Currently, Itau Unibanco has 3,527 branches in Brazil.
In another development, Itau also announced plans to launch an instant payments platform by the third quarter of this year.
The digital platform, called Iti, will be available as an app and will enable payments by scanning QR codes. It will also include in-house messaging service.
In February this year, Itau Unibanco reported a net income of BRA25.7bn ($6.9bn) for 2018, an increase of 3.21% compared to 2017.
