Santander UK has announced it is set to close 95 branches across the country, putting approximately 750 jobs at risk. In a statement made on March 19, 2025, the high street bank revealed that the closures will start from June this year, with a considerable shift observed in customer banking habits. As more customers opt to manage their banking needs online, Santander has decided to streamline its branch operations.
This announcement comes amidst a backdrop of shifting customer preferences, as the bank noted a staggering 63% increase in digital transactions since 2019, while branch transactions saw a similar decline of 61%. "Closing a branch is always a very difficult decision and we spend a great deal of time assessing where and when we do this and how to minimise the impact it may have on our customers," stated a spokesperson from Santander UK.
Post-closure, Santander will have a total of 349 branches, down from the current 444. Importantly, 290 will remain as full-service branches, while 36 will operate on reduced hours. Furthermore, 18 branches will transition to being counter-free, meaning they will no longer have staff available for face-to-face transactions.
In an effort to mitigate the loss of in-person banking services, Santander is introducing 95 community bankers who will periodically visit affected regions, maintaining a physical banking presence through local outreach efforts. These community bankers are expected to provide face-to-face support at venues such as libraries.
Consumer advocacy group Which? expressed concern over the closures, emphasizing that "access to cash remains hugely important for a significant minority who use it to pay for everyday essentials and keep track of their spending." The group's money editor, Jenny Ross, noted, "Santander's decision to close almost a quarter of its network will come as a real blow to many customers," reinforcing the belief that financial institutions have a duty to ensure adequate banking access.
With increased emphasis from lawmakers on the importance of community access to cash, the government has been urged to ensure banks commit to providing alternative banking services, especially in rural areas. "The government must hold banks' feet to the fire to make sure commitments to set up banking hubs are met," said Ross.
In tandem with Santander’s closure announcement, Lloyds Banking Group has also faced scrutiny for its planned closures, with 136 branches expected to shut down, reflecting a broader trend across the banking industry. Santander, which employs around 18,000 people in the UK, has also been in the news due to speculation regarding its future ownership, although the bank has affirmed that its UK unit is not for sale.
Speaking during the World Economic Forum in January, Ana Botin, Santander's chairman, reassured attendees that "we love the UK. It’s a co-market and will remain a co-market for Santander." This commitment appears conflicted in light of recent announcements about the banking shifts that point towards overall consolidation within the market.
Branch closures are becoming a common theme among banks adapting to the rapidly changing landscape of digital finance. As they seek to balance investment, profitability, and customer satisfaction, reduction in physical footprint through branch closures seems to be a necessary evolution.
Even with this reduction of services at some branches, Santander asserts that it aims to effectively meet the varying needs of its users going forward. The bank indicated that 93% of the UK population would still be within ten miles of a Santander branch after the closure process is complete, ensuring continued access to its services.
This situation also underlines a growing reliance on mobile banking, with Santander reporting that over a fifth of current accounts are now opened digitally, alongside a 56% increase in mobile banking users. This evolution reflects a significant generational shift in the way banking is approached, as customers seek faster, more efficient ways to manage their finances.
In summary, while Santander's restructuring and branch closures make economic sense amid the rise of digital transactions, they pose challenges for customers dependent on physical banking services. The transition raises important questions about the future of banking in the UK and how financial institutions will balance technological advancements with customer needs in the face of rapid industry changes.
