Challenger bank TSB has revealed plans to shut down 25 less well used branches, and instead invest £250m in the busier branches and digital offerings.

A total of eight branches will be closed in Scotland, including Aberdeen, Dundee, Denny, Edinburgh and East Renfrewshire.

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The bank said that the move will not lead to compulsory layoffs. Employees at the affected branches will be relocated to other branches.

"There are 13 towns and cities where TSB has multiple branches in close proximity and customers are showing a clear preference for one branch above another. As a result the Bank will close 25 of the less well used outlets by the end of April 2017 and invest in the busier ones. This investment is part of TSB’s ongoing commitment to providing a strong branch network," TSB said.

The bank, which is now owned by Spain’s Sabadell, also announced that it would create new flagship branches designed in response to customer research and feedback. The first of these branches would be located in Birmingham and Aberdeen and are expected to launch later this year.

TSB will also fully overhaul 10 of its branches and refit about 100 others to modernise its network. The upgraded branches will be equipped with advanced technology, more facilities and improved services such as more self-service facilities and more TSB Partners on hand.

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TSB distribution director Peter Navin said: "Technology is increasingly popular with our customers but they are telling us that there are also times when only face-to-face contact will do. For example, when people are making a big decision, such as buying a new home, or when they need a helping hand. It’s at these times the human touch really makes a difference.

"This is why we are continuing to invest in our branch network as well as our digital offering and we’re excited to be opening new flagship branches in Aberdeen and Birmingham later this year."