In a significant restructuring move, Santander UK has announced the closure of 95 branches across the country, which is set to put approximately 750 jobs at risk. This decision comes amidst a broader trend of customers shifting towards digital banking, a shift evidenced by a 63% increase in digital transactions compared to three years ago.
The closures will take effect starting June 16, 2025, with specific dates planned for various locations throughout Northern Ireland and the rest of the UK. Notably, the Dungannon branch will be one of the first to close, followed by Magherafelt, and numerous other branches in England and Wales.
After the closures, Santander will have 349 branches left in the UK, a significant reduction from its current count of 444. This includes 290 full-service locations and five innovative work cafés aimed at blending digital and face-to-face banking services. With bank transactions slumping by 61% since 2019, the drastic changes highlight the evolution of banking preferences among customers.
“As customer behaviour changes, we are ensuring that our branches remain fit for the future,” a spokesperson for Santander UK stated. “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.”
In light of the closures, Link, a cash access network, has recommended establishing 19 banking hubs to fill the gaps left by the closures, particularly in areas that experience limited access to banking services. The proposed hubs will provide essential face-to-face banking services shared by multiple banks, allowing patrons to manage their finances more effectively amidst the branch reductions.
These banking hubs function similarly to traditional branches but are designed to operate more efficiently, allowing customers from various banks to carry out daily transactions. Locations were prioritized based on the impact of lost banking services on residents, particularly affecting communities with a higher proportion of elderly or less digitally connected individuals.
The establishment of these hubs aligns with the government’s aim to create 350 banking hubs throughout this Parliament, with 139 already operational. Community members have shown a strong demand for these services, with Link announcing that they will oversee the rollout of new locations to provide much-needed access.
The tremendous changes at Santander follow prior cuts when the bank closed 111 branches in 2021 as part of a previous network overhaul. As the trend continues, it remains vital for banking entities to maintain engagement with their communities.
Consumer groups have raised concerns about the impact of Santander’s branch closures on local communities, calling for accelerated efforts to deploy banking hubs. Jenny Ross, a money editor at the consumer watchdog Which?, commented on the urgency of addressing banking access for affected 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,” Ross explained. “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.”
As Santander prepares for the changes, it also plans to recruit 95 new community bankers in areas where branches will shut down, showcasing its commitment to maintaining some level of face-to-face service. The bank hopes to redeploy many of the affected employees into these new roles, yet the future of current branch employees remains uncertain amidst the large cuts.
While these closures represent a shift in Santander’s strategy to adapt to the modern banking landscape, they also highlight critical vulnerabilities for customers reliant on in-person banking services. Employees and customers alike await further developments following consultations regarding the impact of the planned job cuts. As Santander balances its future operations with evolving customer preferences, the establishment of banking hubs emerges as a crucial element in sustaining local banking access during this transformative period.
