SANTANDER UK, the British arm of Spain's Banco Santander, announced on Wednesday that it plans to close 95 of its 444 branches, putting around 750 jobs at risk.
The closures, set to begin in June, will reduce the bank’s branch network by about a fifth.
Following the changes, Santander UK will operate 349 outlets, including 290 full-service branches and 36 with reduced hours.
Like other banks in Britain, Santander has been cutting branch numbers as more customers shift to digital banking.
The bank reported a 63 per cent increase in digital transactions since 2019, while financial transactions in branches have dropped by 61 per cent over the same period.
The closures have drawn criticism from UK lawmakers, who argue that widespread reductions in bank branches make it harder for local businesses and vulnerable customers, especially in rural areas, to access banking services.
In September, the Financial Conduct Authority introduced new rules requiring banks to ensure communities have free access to alternative cash services before shutting branches.
"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," Santander UK said.
"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."
Santander said it is consulting employee unions on the changes and will provide support to affected staff, including assistance in finding other roles within the bank.
Santander UK employs around 18,000 people, according to its annual report. The bank reported a 38 per cent drop in annual pretax profit to £1.33 billion in 2024.
Last month, Banco Santander said its UK division remained a key part of its global business and was not for sale, following media reports suggesting a review of its presence in Britain.
In January, Reuters reported that Barclays had approached Santander about a possible offer, but discussions did not progress beyond the early stages.
(With inputs from Reuters)
An aerial view of the British Steel Scunthorpe site on September 13, 2024. (Photo: Getty Images)
