Santander has confirmed plans to close 44 of its bank branches across the United Kingdom, a decision that places 291 jobs at significant risk. This latest round of closures forms part of a broader strategic overhaul of the bank's physical store network, driven by an accelerating customer migration towards digital banking services.
Digital Shift Drives Branch Network Restructuring
The Spain-based banking giant attributes these closures directly to a substantial and ongoing shift in customer behaviour. According to Santander, a remarkable 96 per cent of all transactions are now completed through digital channels. This figure underscores a rapid increase in the number of customers opting for online and mobile banking, rendering many traditional branch locations less viable.
Second Major Closure Wave in Under a Year
This announcement comes less than twelve months after Santander's previous significant branch reduction. In March of last year, the business shuttered 95 branches, a move that impacted approximately 750 employees. The consecutive closure programmes highlight the persistent pressure on physical banking infrastructure as the industry adapts to a digital-first era.
New Community Banking Model to Replace Branches
Santander has outlined that the closing branches will not simply leave a void in local communities. Instead, they will be replaced by a new model involving "community bankers." These staff members will operate from alternative locations such as Santander Local stores or shared banking hubs. This approach is designed to maintain a physical presence and provide face-to-face support in areas where full-service branches are no longer sustainable.
Bank's Commitment to a Hybrid Future
A spokeswoman for Santander elaborated on the strategy, stating: "In response to a continuing and sizeable shift towards customers using digital banking, we are making changes to our branches to better support our customers." She emphasised the bank's dual investment strategy, committing resources to both its evolving branch network and its digital platforms.
The bank's future physical presence will comprise a mix of formats, including full-service branches, counter-free branches, reduced-hour branches, Santander Locals, and its work cafes. The overarching goal is to provide flexible support, allowing customers to bank in the manner that best suits their needs, whether digitally or in person.
This restructuring reflects a critical juncture for UK high street banking, where institutions are compelled to balance cost-efficiency and digital innovation with maintaining essential community links and customer service standards.
