Santander has announced sweeping changes that will see the closure of 95 branches across the UK, affecting approximately 750 jobs. This decision highlights the significant transformation in customer banking behavior, as digital transactions continue to rise.
The high street lender confirmed that the closures will take place in June 2025, leaving Santander with 349 branches from its current network of 444. Alongside this, the bank will be reducing hours at 36 sites and converting 18 branches to a counter-free model. With over 14 million customers potentially impacted, these changes signal a considerable shift in how banking services are provided to the public.
According to a spokesperson for Santander, "As customer behaviour changes, we are ensuring that our branches remain fit for the future. Our new combination of full-service branches, alongside work cafes, counter-free branches and reduced hours branches, aims to provide the right balance between digital banking and face-to-face money management and guidance." The spokesperson added, "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."
The ongoing trend of decreasing physical bank branches is evident across the banking landscape. Since 2015, consumer group Which? reports that more than 6,200 bank and building society branches have shut down, averaging 53 closures each month. Major bank competitors like Lloyds and NatWest have also been reducing their physical presence significantly. In January 2025 alone, Lloyds Banking Group announced it would close 136 sites, including branches under the Lloyds and Halifax brand.
Julie Ross, a money editor at Which?, expressed concerns citing that these closures will be a major blow to many customers: "Schemes introduced by the banking industry to protect these services, such as banking hubs, are a good start in plugging gaps left by closing physical branches, but they must be rolled out much more quickly if consumers are to feel their benefits."
As consumer habits shift towards using mobile apps for transactions, Santander has noted a staggering 63% increase in digital banking transactions since 2019, while branch visits have declined by 61%. This changing landscape challenges banks to adapt swiftly to remain viable in the competitive financial sector.
From June 30, many of the branches that will still operate will do so on a more limited schedule, opening only three days a week. Customers at these locations can expect hours such as Mondays, Wednesdays, and Fridays from 9.30 am to 3.00 pm, or Tuesdays and Thursdays from 9.30 am to 3.00 pm and shorter hours on Saturdays from 9.30 am to 12.30 pm.
Santander plans to introduce 95 new community banker roles to help fill the gap left by the closures. These bankers will provide face-to-face support at local banking hubs, aiming to give customers the in-person guidance they might miss from physical branches. This initiative is part of Santander's commitment to maintain a balance between digital services and traditional banking methods.
Despite speculation in January that Santander might consider abandoning the UK market due to excessive regulatory pressures, a company spokesperson confirmed, "The UK is a core market for Santander and this has not changed." This assurance comes amidst concerns about the impact of branch closings and the adequacy of remaining services.
As community members grapple with the loss of physical banking options in their neighborhoods, banking giants must grapple with the substantial changes brought on by digital transformation. Enhanced services through banking hubs may alleviate some concerns, but there remains a significant portion of the population—especially the elderly—that rely heavily on in-person banking services. Age UK reports that only 14% of individuals aged 85 and older utilize online banking, while 58% still rely on traditional face-to-face interactions.
The trend toward digital banking feels unstoppable, raising urgent concerns among consumers and advocates over equitable access to financial services. As noted in the wake of past closures, crucial functional support is needed for those who find themselves marginalized by the mass transition. "The government must hold banks' feet to the fire to ensure the commitments they've made to set up 350 hubs by 2029 are met," Ross emphasized, acknowledging the essential role that these hubs could play in supporting communities impacted by closures.
A look at the broader impact shows that the financial landscape is evolving, with the pressing need for banks to offer hybrid models that can accommodate both digital and human interactions. The sound of bank doors not closing indefinitely could depend on the willingness of financial institutions to not only adapt but also support its customers through an era of rapid change.
As of now, Santander’s announcement represents a turning point, with an ongoing need for collaboration between banks, developers, and customers alike as they find ways to navigate this new financial territory.
