On January 20, the Banque de France launched a new restructuring plan for its branch network. The plan calls for the closure of 14 of its 37 regional branches by the second half of 2022. This announcement could result in the loss of 135 jobs.
Reduced use of the species on a daily basis
The use of cash has been declining for several years, a trend that has been accentuated by containment and health measures. With the Covid-19 crisis and the need to limit interactions, contactless payments have exploded.
One in two French people say they have been paying more with contactless cards since the start of the crisis, according to a study published by the ECB in December 2020. Even though cash exchanges have resumed after the periods of confinement, they have durably decreased in everyday transactions. In the medium term, between 2016 and 2019, we could already observe a clear decline in the use of cash as a means of transaction. Indeed, while cash remained the dominant means of payment in 2019 in terms of volume (59%), it declined in terms of value, from 28% to 25%. France is now one of the European countries with the lowest use of cash in terms of value.
The development of alternative means of payment to cash has led the Banque de France to question the usefulness of its regional branches, which are responsible for recycling and supplying banknotes to banks and retailers throughout France.
Banque de France unveils network restructuring plan
The institution has announced the closure of 14 of its 37 remaining regional branches. Erick Lacourrège, General Manager of the Banque de France's economic services and network, told Les Echos newspaper that there will be "no site closures", but only a cessation of the "caisse" part of these branches, while their agency activities, involving the reception of private individuals or the quotation of companies, will be maintained. However, there will be no "white zones", as the Banque de France plans to keep between one and three branches per region.
The restructuring plan will affect 135 employees, or around 1% of the monetary institution's total workforce. The unions are expecting 200 job cuts, and are calling for a voluntary redundancy plan with "zero forced mobility". However, Erick Lacourrège assures them that there will be "no forced departures", and that each employee will be offered the possibility ofrepositioning in another branch or business line within the Banque de France.
The unions also claim that, by reducing its territorial footprint, the Banque de France is making itself dependent on cash-in-transit companies, thereby increasing the risks to financial stability. Indeed, the two main players operating on the French market in this sector are in a situation of financial fragility.