Just a few days after its latest system breakdown saw people paid hours late, TSB has said it will shut 82 branches next year.
Chief executive Debbie Crosbie said: "Our new strategy positions TSB to succeed in a challenging external environment at a time when we know customers want something different and better from their bank.
“With a trusted brand, modern platform, and national presence, TSB is well placed to deliver – but we need to make changes to enable us to compete."
TSB said it will invest £120million in digital solutions, products and services over the next three years, but close 82 branches.
The overall branch network will shrink from 540 to 454.
“The plan we’re sharing today involves some difficult decisions, but it sets TSB up to succeed in the future," Crisbie said.
"Taken together, these changes will help us to serve more customers, better, for the long-term.”
The move comes just days after a payments glitch saw it direct customers to branches for emergency cash when wages failed to arrive in their accounts.
Gareth Shaw, head of money at consumer group Which?, said: "It's beyond belief that customers have experienced more problems as a result of yet another IT glitch from TSB, hot on the heels of a damning report into the bank's system failure last year.
"With banks increasingly trying to move customers online, these IT glitches are still far too common across the industry, and it's clear that people need access to cash as a back-up."
As well as cutting 82 branches, TSB said it would invest in self-service in branches and "flagship branches".
Locations of branch closures will be announced on 28 November.
TSB's new "strategy for growth", unveiled today, puts its focus squarely on digital banking and back end systems.
As well as the £120million investment to transform digital channels, the bank said it was cutting £100million of costs.
"TSB will be more mobile and digitally focused," the bank said in outlining its plans.
It promised an "easier to use service" and "more relevant products".
There were also changes to the system it uses to let people bank from their phones. It plans to allow people to access all TSB banking services on the go.
"TSB’s new IT platform has a strong foundation to build upon for the future," TSB said.
As for fears around the stability of the platform - the bank said its IT transformation programme was "focused on stability and cybersecurity".
Jaime Guardiola, chief executive of TSB's parent company Sabadell, said: “TSB has a strong starting position and a well-defined plan to deliver all the commitments.
“I am very confident that TSB has the right team to deliver this plan and they have all the support from the Group.”
