Santander UK announces closures of 95 branches cutting 750 jobs
- Santander UK plans to close 95 branches starting in June due to declining in-branch transactions.
- The restructuring will lead to significant job losses, with 750 positions at risk.
- The bank aims to provide better digital banking services while ensuring that the majority of the population remains within reach of banking facilities.
In the UK, Santander has revealed its plans to close 95 branches from June, affecting many customers and staff. The closures come in light of a significant shift in consumer banking behavior, with a marked decline in in-branch transactions, which fell by 61% since 2019. Concurrently, there has been a substantial rise in the use of digital banking services. The restructuring decision aims to align the branch network with the increasing demand for online banking solutions. Overall, Santander will operate 349 branches post-closures, including 290 full-service locations and a few community banking solutions. The branch reduction is part of a broader trend observed across the banking sector, wherein physical locations are gradually being overshadowed by digital platforms. Santander's investment in digital banking has intensified, prompting it to reassess its physical footprint within the UK. Such decisions are not uncontroversial, as numerous stakeholders, including community leaders and consumer advocacy groups, have raised concerns about the impact of these closures on access to banking services, particularly for the elderly and those in rural areas. As part of its strategy to mitigate the service gap left by branch closures, Santander will introduce community bankers in areas affected by these changes. Customers will still have access to banking services through Post Office branches, which serve as alternate access points. These measures are intended to ensure that most of the UK population remains within a 10-mile radius of a bank or suitable financial service, maintaining essential service availability. While restructuring efforts are aimed at streamlining operations, the affected workforce faces significant uncertainty with 750 jobs at risk of redundancy. The bank plans to hold consultations with the unions to discuss the impact of these changes on employees. The decision represents a critical juncture for the financial institution as it seeks to balance customer needs with operational sustainability.