Santander UK has announced plans to shut 95 branches across the country, putting approximately 750 jobs at risk. The closures, scheduled for June, are part of a wider restructuring of the bank’s network, which will also see reduced hours at 36 branches and 18 sites converted into counter-free locations.
Following these changes, Santander will be left with 349 branches nationwide, including 290 full-service locations and five “work cafes.”
Shift to Digital Banking
The bank cited the ongoing shift towards digital banking as the reason for the overhaul, noting a 63% increase in online transactions since 2019, while in-branch transactions have declined by 61%.
A Santander UK spokesperson said: “As customer behaviour changes, we are ensuring that our branches remain 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 financial support.”
From 30 June, most reduced-hours branches will be open only three days a week—either Monday, Wednesday, and Friday from 9:30 am to 3:00 pm, or Tuesday and Thursday from 9:30 am to 3:00 pm with Saturday hours from 9:30 am to 12:30 pm.
Impact on Jobs and Local Communities
The bank’s restructuring plan could affect more than 4% of its UK workforce, with the majority of redundancies tied to the branch closures. However, Santander has stated that 12% of job cuts are related to reduced branch hours.
To mitigate job losses, 95 new community banking roles will be created in areas where branches are shutting. The bank has also pledged to assist affected employees in finding alternative positions.
In addition, Santander will work with Cash Access UK—a banking industry initiative—to establish 18 new banking hubs in communities affected by closures. These hubs, which are shared banking spaces for multiple lenders, are designed to maintain in-person banking access for customers in underserved areas.
Concerns from Consumer Groups
The announcement has drawn criticism from consumer advocacy groups, with concerns that the closures will significantly impact vulnerable customers who rely on in-person services.
A consumer rights expert said: “Schemes introduced by the banking industry, such as banking hubs, are a good start in plugging gaps left by closing physical branches, but they must be rolled out much more quickly if consumers are to feel their benefits.”
As the UK banking sector continues to shift towards digital services, Santander’s latest branch closures reflect a broader industry trend. However, the impact on local communities and job security remains a growing concern.
