SANTANDER UK: The Spanish multinational financial institution has set its sights on a major reshaping of its presence in the UK, as it announced plans to close 95 of its 444 branches effective from June 2025. This decision will impact approximately 750 employees and marks a significant shift in Santander's operational strategy aimed at adapting to the changing landscape of banking.
The closures, which represent nearly a quarter of the bank's branches in the UK, come in the wake of a dramatic 38 percent reduction in pre-tax profits, which fell to £1.33 billion (€1.6 billion) in 2024. Ana Botin, chairwoman of Santander, reiterated the bank's commitment to the UK, stating, “We love the UK. It’s a co-market and will remain a co-market for Santander. Full stop.” However, Botin remarked on March 18 that the bank is now positioned to shift resources away from lower-performing units, favoring the US and Latin America for future growth.
This strategic overhaul is catalyzed by evolving customer behaviors toward digital banking. The bank has recorded a staggering 63 percent increase in digital transactions since 2019, while branch transactions plummeted by 61 percent in the same period. As a result, the bank has made the tough decision to transition more of its branch offerings to digital formats.
Following the closures, Santander UK will maintain 290 full-service branches, while transitioning 18 to a “counter-free” model, enhancing their service capacity with additional facilities. Additionally, 36 branches will reduce their opening hours significantly. New “Work Cafe” hubs featuring co-working spaces and high-speed internet will also be introduced, showcasing a shift to more innovative, customer-friendly environments.
A spokesperson for Santander stated, “Closing a branch is always a very difficult decision. We spend a great deal of time assessing where and when we do this and how to minimize the impact it may have on our customers.” This transparency is vital, given that the restructuring directly affects employee livelihoods.
Controversially, critics argue that these closures could hinder local businesses and access to services in rural areas, as bank branches often serve as lifelines in small communities. Some politicians have voiced their discontent regarding the issue, criticizing the bank for making financial decisions that neglect community needs.
In response to regulatory scrutiny, Santander UK is holding consultations with unions to address the potential impact of these changes on employees and has committed to supporting those affected. “As a company, we have to follow our customers and balance our investments in all the places in which we interact with them to provide them the best service now and in the future,” the bank explained in a statement to the press.
Deployment of new community bankers to replace some branch employees is also planned at the locations where branches will close, potentially softening the impact of job losses. The staff-to-customer service model aims to provide ongoing support while adapting to the new banking landscape.
As evident in previous downsizing efforts, Santander had already closed 111 branches back in 2021, reflecting a long-term strategy of cost reduction aligned with the industry’s shift to digital channels. The implications of the latest announcement emphasize the prevailing trend in the banking sector, where traditional banks are continually reassessing their operational footprints amid rising digital preferences in consumer banking.
Looking ahead, Santander UK will embark on a journey to redefine its approach to personal banking, aiming to create a hybrid mix of digital accessibility and personal interaction. The new structure will test how the bank adapts to customer needs in a post-pandemic financial climate while remaining competitive against emerging fintech companies.
Stay tuned for more updates as this story develops, as Santander’s plans will undoubtedly reshape the future of banking for its customers and employees alike.
