Santander Bank has announced it will close 95 branches in the UK, a move that will put 750 jobs at risk. The high street bank stated that its customers are increasingly turning to online banking services and plans to begin closing nearly a quarter of its branches starting in June. This shift towards digital banking necessitates adjustments to their physical presence.
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03-20, 2025As part of the adjustments, Santander will also reduce opening hours at 36 branches and remove front counter services at another 18. Santander is the latest bank to announce branch closures, following Lloyds Bank's announcement of 136 branch closures in January. After the closures, Santander will retain only 349 branches, down from the previous 444. These closures reflect a broader trend in the banking industry.
Santander stated that 95 "community bankers" will be responsible for covering the areas of the branches set to close, visiting local communities weekly and providing services in locations such as libraries. Santander said the adjustments were due to "the rapid shift of customers to digital banking services." Since 2019, digital transactions have increased by nearly two-thirds, while branch transactions have seen a similar decline. This change in customer behavior drives the need for a different service model.
A Santander spokesperson said: "Branch closures are always a very difficult decision, and we spend a great deal of time assessing where and when we close, and how to minimise its impact on customers." The bank said that approximately 750 employees are at risk of redundancy if the proposals are implemented, following consultation with unions. Some MPs have criticised bank branch closures, saying they leave people in rural areas "shut out." The bank is committed to supporting affected employees through the transition.
Santander stated that it will continue to open so-called "work cafes," centers where customers can access banking services, withdraw cash, and use as workspaces. There are currently five open in the UK, with two located in London, Cheapside and High Street Kensington, having opened this month. Spanish Santander said last month that its UK division was not for sale, after reports that it was reviewing whether to remain in the UK. These work cafes offer a modern approach to banking services.
Consumer group Which? said Santander's decision to close nearly a quarter of its network of stores "will be a real blow to many customers." Jenny Ross, the organization's money editor, said: "Access to cash remains vital for the minority who still use it to pay for everyday essentials and keep track of their spending." She said that plans to protect banking services, such as banking hubs, are "a good start to filling the gaps left by physical branch closures" but said they should be "rolled out more quickly" if consumers are to feel the benefits. The transition to digital banking must consider the needs of all customers.
Ms. Ross added that the government "must keep a close eye on banks" to ensure the commitment to set up 350 banking hubs by 2029 is met, and be prepared to increase that total if necessary. Under UK rules, banks and building societies must assess whether an area has reasonable access to cash when closing a branch. If not, they need to provide more facilities, such as shared hubs, before closing the branch. Although Santander branches are closing, there may be 19 locations where banking hubs will open as replacements, according to Link, which regulates the UK's ATM network. These hubs aim to provide essential banking services in areas with limited access.
Separately, bucking the trend of high street store closures, Superdrug has said it plans to open 25 new stores this year, creating 600 jobs. The stores will increase beauty treatment and fragrance services due to strong shopper demand. This expansion highlights the continued importance of physical retail in certain sectors.
