First National Bank intends to axe 600 jobs and close 40 retail branches as its customers shift to digital banking, according to a report.

Bloomberg reported on Monday afternoon that the weak economy had also contributed to the cost-cutting move.

According to the report, about 10% of the bank’s branches will be affected by the move, with 40 closing their doors and a further 31 reducing employee numbers.

FNB is seen as leader in digital banking in South Africa and has been incentivising clients aggressively to use digital channels such as online banking and its smartphone app instead of visiting branches, which are costly to maintain.