March 19, 2025 — In a major shake-up of its British retail operations, Santander UK announced plans to shutter 95 branches across the United Kingdom, a move that places around 750 jobs at risk. The closures, set to begin in June 2025, come as the bank responds to the seismic shift in customer behavior towards digital banking services.

This significant decision is part of Santander's ongoing strategy to streamline its physical network and reallocate resources to support its digital transformation.

What Santander’s Branch Closures Mean for Customers and Employees

Once the closures are finalized, Santander’s UK branch network will be reduced to 349 locations. Of these:

• 290 will operate as full-service branches.
• 36 will be open on reduced hours.
• 18 will be counter-free, focusing exclusively on self-service transactions.
• 5 will operate as “Work Cafés,” combining banking services with co-working spaces and coffee shop amenities.

A Santander UK spokesperson acknowledged the emotional weight of the decision:

“Closing a branch is never an easy choice. We carefully analyze each location to ensure we minimize the impact on customers and local communities.”

Santander says it is working closely with employee unions during the consultation process and aims to redeploy affected staff wherever possible. As of 2024, the bank employs around 18,000 full-time workers in the UK.

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Digital Shift Driving the Decision: Customer Behavior Has Changed Drastically

The bank cites a dramatic surge in digital banking as a major factor behind the closures. Since 2019, digital transactions at Santander have skyrocketed by 63%, while in-person transactions at branches have plummeted by 61%.
This trend echoes the broader shift across the UK banking sector, where digital services continue to eclipse traditional face-to-face interactions.

According to UK Finance, over 90% of customer interactions in 2024 were conducted online or via mobile banking apps. Branch usage, especially in rural and less densely populated areas, has declined significantly.

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Santander’s Commitment to the UK Remains, Despite Market Speculation

Despite the closures and job risks, Santander insists its commitment to the UK market is unwavering. Speculation about a possible withdrawal from Britain intensified earlier this year after the Financial Times reported on a potential review of Santander’s global strategy. However, Executive Chair Ana Botín has publicly refuted those claims.

“The UK remains one of Santander’s core markets, and our long-term strategy here has not changed,” a company spokesperson reaffirmed to CNBC.

The bank’s UK operations have been central to its global portfolio since Santander’s acquisition of Abbey National in 2004, a move that established its high street presence in Britain.

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Ongoing Cost-Cutting and Restructuring: What’s Next?

The upcoming branch closures are part of a broader cost-reduction plan aimed at boosting efficiency across Santander’s UK division. In October 2024, Reuters reported that CEO Héctor Grisi had forecast over 1,400 job cuts in Britain as part of this drive, though a definitive timeline has not been provided.

In November 2024, Santander set aside £295 million ($382.7 million) to cover potential payouts related to a widespread regulatory investigation into motor finance commissions. This unexpected provision raised further concerns about the bank’s profitability in the UK.

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A Look at Santander’s Financial Health and Shareholder Rewards

Despite facing challenges in the UK, Santander’s financial performance remains robust. Spain’s largest lender reported record fourth-quarter profits in February 2025, with net income rising 11% year-over-year to €3.265 billion ($3.56 billion).

Looking ahead, Santander plans to return substantial value to shareholders. It announced an ambitious €10 billion ($10.89 billion) share buyback program, which will be funded from excess capital generated by 2025 and 2026 earnings.

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How Santander UK Customers Can Access Banking Services Moving Forward

With the upcoming closures, Santander says it is committed to supporting its customers through the transition:

• It will maintain a network of over 100 community bankers who can offer face-to-face support in key locations.
• Santander’s mobile banking app and online services continue to expand, with new features aimed at providing comprehensive financial services remotely.
• The bank is also part of the UK’s Banking Hubs initiative, which provides shared physical spaces in underserved areas.

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