TECHNOLOGY of the 21st century, including the advent of the internet, has led to the shock closure of Minehead branch of Birmingham Midshires.

The staff of six were told at 5pm on Tuesday that theirs was one of 47 branches to close nationwide in a shake-up that affects 220 employees altogether.

With the explosion of internet and telephone banking, branches have seen a dramatic decline in customers coming through the door.

Birmingham Midshires was a building society until April 1999 but is now a subsidiary of the Halifax.

On Tuesday, a Birmingham Midshires' chief visited Minehead to deliver the news in person, as is company policy.

The staff were also told they would be transferred to other town branches such as Bridgwater and Taunton after the closure on September 28.

One worker, who wished to remain anonymous, said: "It was a business strategy review of Birmingham Midshires that the company should remain strong.

"However the increase in people using the internet and their telephone to do their banking has meant building societies are becoming obsolete.

"In Minehead, however, we have an elderly population and we do deal with a lot of them on a face-to-face basis so it will affect them.

"Although we have been told we are to be relocated, I personally don't think it will happen and I don't see how it will happen."

Customer Mrs Joyce Cane, aged 75, who has used the branch for 30 years, said: "I am an elderly lady and I have no transport or any other way of getting to Taunton or Bridgwater.

"It's a shame for the girls and staff who work there who I've always found to be friendly and helpful."

The town currently has six other banks and building societies in Wellington Square and in the The Parade but the closure will mean the nearest Birmingham Midshires branch will be in Taunton or Bridgwater.

Minehead Chamber of Commerce chairman Mike Padgett said: "Any closure is regrettable in Minehead but especially when it is a bank or building society as there is less chance for people to distribute money.

"Hopefully they will be relocated but if they are made redundant they might be able to get other jobs with other banks or building societies in the town.

"It's a sad indictment for Minehead that there are not enough jobs for the people in the town."

Birmingham Midshires currently manages assets of more than £10 billion and employs more than 2,200 staff across the country, including at its head office in Wolverhampton and mortgage centre in Cardiff.

The fall from 113 branches down to just 66 will be concentrated in the West Midlands, the South West and North West with a stronger emphasis on direct distribution.

Many of the branches which are closing have had a limited presence, such as in the South East where Birmingham Midshires runs just seven outlets.

Birmingham Midshires spokesman Debbie Dance said: "The move comes following a comprehensive review of strategy by the business and takes into account the significant changes within financial services and shifting customer habits, in particular, the choice by growing numbers to operate their finances through direct channels like the post, telephone and internet.

"We will be writing to relevant customers offering them a range of alternatives, including operating their existing account at another branch or by post or opening a new telephone or postal savings account.

"It is expected that the majority of the 220 affected staff will take up roles elsewhere within the Birmingham Midshires and Halifax Group."

Managing director Ian Kerr said: "These are tough decisions, but they are the right decisions for Birmingham Midshires.

"We are refocusing our network on locations where we are strong on the ground and developing new products and services that will deliver a rapidly growing, national customer base.

"This strategy will ensure Birmingham Midshires has a strong and prosperous future and that we are still here in five and ten years time, serving many more customers than we are today."

The company plans to extend the choice of the savings range, especially equity-linked accounts, and a number of new channel initiatives will be developed.

A new telephone account will also be launched next month and the commercial side of the company aimed at lending products to corporate clients will be expanded.