Santander has confirmed plans to close another 44 branches across the United Kingdom, placing 291 jobs at risk of redundancy as the Spanish banking giant intensifies its digital transformation strategy.
Digital Focus Drives High Street Retreat
The latest round of closures reflects what Santander describes as "changing consumer behaviour," with the bank prioritising its digital offerings to compete effectively with fintech rivals. This decision marks a significant continuation of the lender's withdrawal from physical high street presence, raising ongoing concerns about access to cash services for communities nationwide.
Banking Deserts Expand Across UK
Analysis from financial research firm Lightyear reveals the scale of the banking retreat, showing that nearly 3,700 bank branches closed between 2016 and 2024. This contraction has created 41 identified "banking deserts" - local authority areas where at least one branch has closed for every 10,000 residents.
Following these latest closures, Santander's UK branch network will be reduced to 305 locations, comprising:
- 244 full-service branches
- 19 counter-free branches
- 36 branches with reduced opening hours
- 6 Work Cafés
- 111 Santander Locals
Financial Impact and Continued Investment
The bank's restructuring has come at a financial cost. During the first quarter of 2025, Santander UK reported provisions for liabilities and charges surged by 69 per cent to £140 million. The bank acknowledged that £42 million of this increase was directly attributable to charges related to branch network changes.
Despite the closures, Santander maintains it will continue investing tens of millions of pounds into its branch investment programme, aiming to refresh nearly 80 per cent of its remaining network.
Industry Context and Counter Movements
Santander's announcement comes amidst broader industry trends. The bank recently completed its acquisition of TSB Bank in a deal valued at approximately £2.9 billion, sparking concerns that the TSB name might disappear from British high streets.
However, not all banks are following the same path. Several major UK banking institutions are making commitments to maintain their physical presence:
- HSBC has pledged not to close any UK branches until at least 2027, with plans to invest £55.8 million in its 327 branches during 2026
- Nationwide committed in November to keeping all its branches open until at least 2030, reporting increased customer visits to its physical locations
Regulatory Warnings and Social Impact
A Treasury Committee report earlier this year issued a stark warning, suggesting the UK risks creating a "two-tier society" if government fails to address declining cash acceptance infrastructure. The widespread closure of bank branches has heightened concerns about financial inclusion, particularly affecting vulnerable groups who rely on physical banking services and cash transactions.
Over the past two years alone, Santander has closed nearly 500 branches according to Lightyear data, illustrating the accelerating pace of transformation within the traditional banking sector as institutions balance digital innovation with maintaining essential customer services.
