Santander to close almost a quarter of UK branches

9 hours ago 2

Tom Espiner

Business reporter, BBC News

Getty Images Santander customer taking money out of a cash machine

Santander has announced it is set to close 95 branches across the UK, putting 750 jobs at risk.

The High Street bank said its customers were increasingly shifting to banking online and it aimed to start closing almost a quarter of its branches from June.

As part of the changes, Santander will also reduce hours at 36 branches and remove the front counters from 18 others.

It is the latest bank to announce branch closures, with Lloyds announcing 136 closures in January.

The closures will leave Santander with 349 branches, down from 444.

It said the areas to lose branches would be covered by 95 "community bankers" who will visit local communities on a weekly basis in facilities such as libraries.

Santander said the changes were due to a "a rapid movement of customers choosing to do their banking digitally".

It added digital transactions had increased by just under two thirds since 2019, with a similar drop for transactions in branches.

"Closing a branch is always a very difficult decision and we spend a great deal of time assessing where and when we do this and how to minimise the impact it may have on our customers," a Santander spokesperson said.

About 750 staff will be at risk of redundancy if the proposals go ahead after consultation with the unions, the Spanish-owned bank said.

Some MPs have criticised bank branch closures, saying they leave people in rural areas "frozen out".

Santander said it would continue to open so-called "work cafés", which are hubs where customers can access banking services, withdraw cash, and also use as a workspace.

It has five currently open in the UK - Cheapside and High Street Kensington opened in London this month.

Banco Santander said last month that its UK unit was not for sale after reports that it was reviewing whether to stay.

Consumer group Which? said Santander's decision to close almost a quarter of its network "will come as a real blow to many customers".

"Access to cash remains hugely important for a significant minority who use it to pay for everyday essentials and keep track of their spending," said the group's money editor Jenny Ross.

She said schemes to protect services such as banking hubs "are a good start in plugging gaps left by closing physical branches", but said they should be rolled out "much more quickly if consumers are to feel their benefits".

The government "must hold banks' feet to the fire" to make sure commitments to set up 350 banking hubs by 2029 are met, and be prepared to push up that total if necessary, Ms Ross added.

Banks and building societies must assess whether areas have reasonable access to cash when they close branches under UK rules.

If not, they need to provide more facilities such as shared hubs before closing a branch.

Although Santander branches are closing, 19 locations may see a banking hub open instead, according to Link, which oversees the UK's cash machine network.

Separately, bucking the trend of High Street closures, Superdrug said it plans to open 25 new shops this year and create 600 jobs.

Shops will see more beauty treatments and perfumes after strong demand by shoppers.