Santander announced plans to close about a quarter of its UK branches, saying the rising popularity of online banking drove it. The bank will close 95 of its 444 branches, dramatically reorganizing its on-the-ground presence nationwide. This follows a dramatic rise in online banking activity and a sudden decline in transactions in the branch.
Closure Reasons
Since 2019, Santander has recorded a 61% drop in walk-in visits and a 63% rise in online banking operations. With customers increasingly switching to mobile apps and Internet website-based banking solutions, physical banking outlets become secondary. It plans to trim its operations and deploy resources for activities that resonate with changing customer behaviour.
Effect on Consumers
These closures will reduce the number of banking services available to many communities, raising concerns over accessibility for older and technology-unfamiliar customers. To soften the blow, Santander will send Community Bankers to provide specialist support in impacted areas. Importantly, while around 750 staff will face job uncertainty, the bank plans to help them by offering career transition schemes and redeployment, demonstrating its commitment to its employees.
Branch Network
Following the closures, Santander will have 349 branches with a new service model:
Full-Service Branches: 290 locations will continue to offer standard banking services.
Reduced-Hours Branches: 36 locations will stay open with reduced operating hours.
18 locations will be counter-free branches, focusing on offering digital assistance rather than traditional teller counters.
Work Cafés: Banking services will be integrated with coworking facilities and networking events at five locations.
Community Banking
Santander will invest in community banking products and expand its digital services to enhance accessibility. The addition of Community Bankers will provide customers with continued face-to-face support. The bank will also engage with post offices and shared banking centres to continue offering required financial services in affected areas.
Industry-Wide Trend
Santander’s move reflects a wider trend among UK high street banks, with other large lenders such as Lloyds and NatWest closing branches. Santander joins schemes for financial access, while the FCA enforces cash access rules.
By closing one-quarter of its UK branches, Santander is adapting to the digital age and meeting consumer demand. The bank is staying true to its commitment to alternative banking services and helping displaced workers. This shift illustrates the evolving face of banking, prioritizing digital-centric services and neighbourhood community outreach, which bodes well for the future of banking.
To make sure that communities will still be able to access important cash services despite branch closures, the Financial Conduct Authority has implemented further standards. Santander supports shared banking hubs and cash access initiatives to meet community financial needs.
