Royal Bank of Scotland’s union Amicus has confirmed that 30 people have been offered voluntary redundancies at Royal Bank of Scotland Intermediary Partners.
The union confirmed that 30 out of the 250-strong team at RBSIP have been offered voluntary redundancies and redeployment.
One source alleges that the redundancies are a result of a “swift turnover” in business development managers over the last year, resulting in more corporate account managers than there were BDMs. They say the cuts bring middle management levels broadly inline with the number of BDMs RBSIP currently has deployed.
But a former RBS source told Mortgage Strategy that the redundancies have meant that RBSIP has lost almost half its management team.
The source says that those who have opted for voluntary redundancy have been “beaten out” by RBS.
He says: “It seems as though RBS has given up on organic growth on the intermediary side and is investing money elsewhere, especially as it recently made bid for ABN Amro.
“Those who have left have left because they do not believe that RBS has an appetite for intermediary business.
“There are no people left and the entrepreneurial people are being beaten out by RBS.
“There was a period where RBS wanted to grow the mortgage business and compete with the likes of HBOS but now its seems that it have given up on this and has instead established a flat structure.
“Mortgages is not RBS’s lifeblood and it never will be and RBS will continue to pull investment in this side of the market.
But Chris Pearson, director of intermediary mortgages at RBS has pledged commitment to its intermediary mortgage business.
He says: “We are committed to building a successful intermediary mortgage business for RBS.
“Since the launch of RBSIP last year, the mortgage market has evolved rapidly and therefore it will come as no surprise that a major player such as RBSIP should look to enhance its proposition in order to keep ahead.
“You’ve got to expect and indeed embrace change in such a dynamic marketplace and sometimes this means structural change.
“We listen to what our intermediary partners feed back to us and take positive action to ensure that we are delivering a service that meets their requirements.
“In an organisation as large and diverse as RBS there are always opportunities for colleagues to take on new roles, not just in a restructure but as business as usual.
“ I am confident that we will continue to demonstrate progress and realise the enormous potential that RBS Intermediary Partners can offer mortgage advisers.”