Santander has announced plans to close nearly a fifth of its UK branches as part of a broader network overhaul, putting 750 jobs at risk.
The retail bank will shut 95 out of its 444 high street outlets by June and will also reduce services or hours at over 50 additional locations.
The move is aimed at adapting to changing customer habits, as digital banking continues to grow rapidly.
The lender had previously stated in January that it was not planning any permanent closures in 2025.
However, the latest decision marks a significant shift in strategy.
In addition to closures, 18 branches will transition to being counter-free, while 36 will operate with reduced hours.
Rising digital banking prompts closures
“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 spokesperson for Santander UK said.
“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 bank cited a “rapid movement” of customers toward digital banking as a key factor.
Since 2019, digital transactions have increased by 63%, while branch-based financial transactions have dropped by 61%.
More than a fifth of current accounts are now opened online, and mobile banking users have surged by 56% in the same period.
New service model to support customers
Following the restructuring, Santander will operate 349 branches in the UK, including 290 full-service locations, 36 with reduced hours, and 18 counter-free branches.
The bank is also rolling out its “Work Café” concept, which will function as community hubs offering co-working space, high-speed WiFi, and event hosting.
To mitigate the impact of closures, Santander will introduce “community bankers” who will provide face-to-face support at banking hubs and visit affected areas weekly.
The bank stated that even after the closures, 93% of the UK population would still be within 10 miles of a Santander branch.
Industry-wide trend of branch reductions
Santander’s move follows a broader trend among UK banks, reducing their physical footprints and adapting to the cost pressures and efficiency demands posed by the digital banking shift.
There is an industry-wide effort to balance in-person banking with the growing reliance on online and mobile services.
Lloyds Banking Group recently announced plans to close 136 branches across its Lloyds, Halifax, and Bank of Scotland brands.
By the end of 2025, Lloyds will have 756 branches remaining, down from 932.
Santander reaffirms UK presence despite takeover rumours
Despite media reports suggesting that Santander was reviewing its UK operations, the bank has reaffirmed that its UK unit remains a core part of its global business model.
Reports had indicated that Barclays had explored a potential acquisition of Santander UK earlier this year, but discussions did not progress beyond preliminary talks.
Santander, which employs around 18,000 people in the UK, remains committed to its operations despite the latest restructuring move.
However, the changes highlight the ongoing transformation of the banking sector, where digital services are taking precedence over traditional high street branches.
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