Zurich Financial Services has confirmed plans to close its UK online banking operation, under a major restructuring programme which will entail the loss of 4500 jobs worldwide.
Zurich, which reported a first-half loss of £1.3bn yesterday, has said it will close its UK online banking service to new customers effective immediately and will wind up the business completely by early next year.
The bank, which employs 270 people in Cheltenham, has attracted 70,000 account applications since it opened in January.
Zurich says existing customers are to receive a £200 compensation payment and will be offered similar online accounts with UK high street bank HBOS.