Santander has announced plans to close 111 branches by the end of August 2021 in response to the ongoing shift by customers towards mobile and online banking, a long-term trend that has been accelerated by the pandemic.
Branch transactions fell by 33% over the two years before the pandemic and declined by a further 50% in 2020. Mobile and online transactions have meanwhile been growing by 20% each year, with almost two-thirds of overall transactions now digital.
The majority of the closing branches are less than three miles from another Santander branch, and the furthest distance is five miles. All are within half a mile of at least two free-to-use ATMs and one mile of the nearest Post Office.
Santander will retain a network of 452 branches following the proposed changes, providing broad coverage across the whole of the UK. All Santander current and business account holders can also bank using one of over 11,000 Post Office branches nationwide.
Santander will carry out a program of activities to support customers of closing branches to find other ways to bank that best suit their needs, including help to find alternative branches and access digital, telephone and Post Office banking services. This will include proactively contacting potentially vulnerable customers by phone to provide individual support.
A dedicated phone number is available to provide customers with help and information on the closures (0800 085 0879). The bank will also hold a series of online events over the coming months where a member of Santander’s branch team will explain alternative ways to bank and the tools and support available.
Santander has consulted its trade unions on the closure proposals and expects to be able to find alternative roles for a significant number of those colleagues wishing to stay with the bank.
Adam Bishop, Head of Branches, said: “Branch usage by customers has fallen considerably over recent years so we have made the difficult decision to consolidate our presence in areas where we have multiple branches relatively close together. The majority of the closing branches are within three miles of another branch and the furthest is five miles away. We will provide every support to customers of closing branches to find alternative ways to bank with us that best suit their individual needs. We are also working alongside our unions to support colleagues through these changes and to find alternative roles for those impacted wherever possible. We continue to believe that branches have an important role to play and we expect the size of our network to remain stable for the foreseeable future. We are committed to supporting our customers and responding to changes in the way customers want to access services.”
As branch usage has declined, Santander has adapted how it uses its branches to support the communities in which it operates. Prior to pandemic restrictions, branches ran events on common financial concerns, such as fraud and buying a home, while larger branches provided meeting space for local businesses and charities. During the pandemic, the events have been moved online, while branch teams have been trained to serve customers by phone and online chat, ensuring customers can get the support they need from home.
To support customers who continue to use cash, Santander has taken an active approach with representation on several industry working groups and a recent submission to the government’s consultation on Access to Cash. On a practical level, the bank is supporting the Mastercard Purchase With Cash Back initiative and is this year rolling out improved ATM functionality to support those withdrawing and depositing cash.