Barclays warns of more UK branch closures The head of retail and business banking at Barclays has warned of branch closures and further job cuts as the bank undergoes a dramatic transformation of its cost-heavy high-street business. Ashok Vaswani, who was handed responsibility for Barclays" global retail arm after Antony Jenkins was promoted to chief executive, said he was planning a significant overhaul of the size, location and functionality of the bank's branches, as swaths of customer transactions are moving online. His comments follow last week's announcement that 1,700 of Barclays" retail staff will lose their jobs as a result of customers" increasing use of mobile and online services rather than traditional branches. In an interview with the Financial Times, Mr Vaswani said: "I'm a firm believer that branches will survive but the format - where they are located and what happens in them - will change. There is no question there will be shrinkage. The changes are part of Barclays" overall efforts to reduce its cost base by £1.7bn a year, or almost 10 per cent. Mr Vaswani said the retail division had to be at the forefront of that given it has a cost-to-income ratio of about 66 per cent - considerably higher than its peers. While that is skewed by the fact that Barclays" lower cost credit cards business is reported separately, analysts have said that costs in the retail division are unsustainable. Mr Vaswani said he planned to reduce the ratio to the "mid-50s" once adjusted for Barclaycard. He added that while he could not rule out further job losses, future cuts would not be as dramatic as last week's. The transformation of the retail business comes as Barclays battles to retain customers amid increasing competition. Mr Vaswani admitted Barclays had lost more personal customers than it had gained since the introduction of new rules that have made it easier for people to switch current accounts. He planned to win back customers by improving the bank's mobile technology - "automating the hell" out of everyday transactions like paying bills, setting up direct debits and transferring money. He revealed the bank would relaunch the entire fee structure of its overdrafts in the first half of next year. "I'm completely committed to making changes even if it means a loss of short-term revenue," he said. When customers realise the bank is helping them avoid charges, I think they will reward us with more business.