Santander to Close More than 100 Branches in the U.K.

Daniel Hall 25/03/2021 6

Santander is set to close more than 100 branches across the United Kingdom due to a strategic shift in its online banking strategy.

This is a major move to reduce the firm's carbon footprint and digitise other departments.

Since few customers were using bank branches, the bank has decided to close 111 branches.

The reduction in branch visits was a long-term trend that had been accelerated by the coronavirus pandemic.

Santander will close offices in London, Bootle, Newcastle, and Manchester before the end of 2021.

840 workers will be affected by the closures, but Santander promised to relocated their jobs within the organisation.

Decline in Bank Branches Across the U.K.

Branch usage has decreased in the U.K with mobile and online banking proving to be preferred by customers.

Santander will still have a high street presence with 452 active branches.

Before the start of the covid-19 pandemic, the number of transactions handled by Santander's bank branches fell by a third.

In 2020, the number of transactions further declined by a further 50%.

On the other hand, mobile and online banking have grown 20% since 2019 with more than 2/3 of transactions now completed without visiting a branch.

Santander also announced that it could potentially move its headquarters from London to Milton Keynes.

It will also reduce the amount of space it rents in London.

Santander is promoting a hybrid culture, allowing its employees to continue working from home and access to local offices.

Covid-19 has accelerated the existing trend towards greater flexible working.

This has brought significant benefits for workers that will commute less frequently.

Physical spaces will still remain important to build interactions within employees and customers.