Santander UK to close 95 Branches Beginning June

Banking giant Santander UK, the British arm of Spain’s Banco Santander, on Wednesday said that it was planning to close 95 of its 444 branches, putting around 750 jobs at risk. The closures, set to begin in June, will reduce the bank’s branch network by about a fifth.

Following the changes, Santander UK will operate 349 outlets, including 290 full-service branches and 36 with reduced hours. Like other banks in Britain, Santander has been cutting branch numbers as more customers shift to digital banking.

The bank said that sweeping changes across its network include the closure of the branches cutting hours at 36 sites and switching 18 to be counter-free.

According to Reuters and local media reports, the decision was taken as customers were increasingly switching to online banking, with a 63% surge in digital transactions since 2019, while branch transactions have slumped by 61 per cent in that time, according to the firm.

The closures have drawn criticism from the UK lawmakers, who argue that widespread reductions in bank branches make it harder for local businesses and vulnerable customers, especially in rural areas, to access banking services, the reports said.

In September, the UK’s Financial Conduct Authority (FCA) introduced new rules requiring banks to ensure communities have free access to alternative cash services before shutting branches.

Moving with Customers

A Santander spokesperson said that as customer behaviour changes, they were ensuring that the branches remained 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.

“As a business, we must move with customers and balance our investment across all the places where we interact with customers, to deliver the very best for them now and in the future,” the spokesperson said.

The spokesperson further said that closing a branch was always a very difficult decision and they spent a great deal of time assessing where and when it should be done and how to minimise the impact it may have on the bank’s customers.

Santander also said that it was consulting employee unions on the changes and will provide support to affected staff, including assistance in finding other roles within the bank, which employs around 18,000 people, according to its annual report. The bank reported a 38% drop in annual pre-tax profit to £1.33 billion in 2024.

Last month, Banco Santander said its UK division remained a key part of its global business and was not for sale, following media reports suggesting a review of its presence in Britain.

In January, it was reported that Barclays had approached Santander about a possible offer, but discussions did not progress beyond the early stages.