Santander announced that it would close almost a fifth (or 750) of its UK branch as part of an overall network revamp. This will put 750 jobs in danger.
By June, the retail bank plans to close 95 of its 444 outlets on high streets and reduce service hours or services at more than 50 other locations.
This move is intended to adapt to the changing habits of customers, given that digital banking has continued to expand rapidly.
In January, the lender stated that they did not plan to close any of their permanent offices in 2025.
The latest strategy shift is a major one.
In addition to the closures, there will be 18 branches that will no longer have counters and 36 with a reduced operating hours.
Rising digital banking prompts closures
Santander UK spokesperson said: “Closing branches is a difficult decision. We spend considerable time considering where, when and how we can minimize the impact on customers.”
As a company, we need to move along with our customers. We must balance all of the areas where we have contact with them, so that we can provide the best service for both now and the future.
As a major factor, the bank pointed to a “rapid shift” in customer behavior towards digital banking.
Digital transactions are up 63% since 2019, while the number of branch-based transactions has dropped 61%.
Mobile banking has increased by 56% over the past year.
Customers to be supported by a new service model
Santander has restructured its UK branch network to 349 locations. This includes 290 branches with full service, 36 branches that have reduced opening hours and 18 branches without a counter.
Work Cafes will also be rolled out by the bank, as hubs for community that offer co-working spaces, high-speed wifi, and hosting events.
Santander has introduced “community banking” to help mitigate the effects of bank closures. These community bankers will visit and provide support in affected areas on a weekly basis.
Santander stated that 93% of UK residents would be still within 10 miles from a branch, even after closure.
Branch reductions are on the rise across all industries
Santander follows a wider trend in UK banking, which is to reduce their physical footprints while adapting the the costs pressures and the efficiency requirements posed by digital banking.
The industry is working to find a balance between in-person services and the increasing reliance on mobile, online and other technologies.
Lloyds Banking Group announced recently plans to shut down 136 branches under its Lloyds Halifax and Bank of Scotland brand names.
Lloyds’ branch count will be down to 756 by 2025. It was 932 before.
Santander reaffirms UK presence despite takeover rumours
Santander has confirmed that despite media reports that it was reviewing UK operations, its UK division remains an integral part of the global business model.
Barclays was reported to have explored the possibility of acquiring Santander UK in early this year. However, discussions never progressed beyond initial talks.
Santander employs approximately 18,000 employees in the UK and remains dedicated to the business despite its latest restructuring.
The changes are a reflection of the transformation that is taking place in the banking industry, with digital services gaining ground over the traditional branches.
As new information becomes available, this post Santander UK branch closures will be updated.
This site is for entertainment only. Click here to read more
