Santander to cut 140 branches

SANTANDER is to close 140 branches in the UK putting more than 1,200 jobs at risk in another blow to the high street, the bank announced yesterday.

A slump in the number of transactions conducted in branches was behind the move and the bank is consulting with unions seeking alternative roles for employees affected by the closures.

The Spanish-owned bank expects to redeploy about a third across the group.

The branches involved include those not visited frequently and in close proximity to another branch.

Following the closures by the end of the year, Santander will retain a network of 614 branches with its customers also having the option to bank using 11,000 Post Office sites across the UK.

The move comes as the number of transactions carried out at Santander branches fell by 23 per cent over the past three years, while transactions online and on mobile phones soared by 99 per cent.

According to consumer group Which?, nearly two thirds of the UK’s bank branch network has been lost over the past 30 years. Banks and building societies had 20,583 branches in 1988 parliamentary records show, but the consumer group’s analysis of current account providers suggests the figure has dwindled to 7,586 branches.

The big high street lenders such as Royal Bank of Scotland and Lloyds Banking Group are also closing outlets to deal with customers’ changing banking habits and to reduce costs, as well as adjusting to the challenge from new digital-only banks such as Starling and Monzo.

However, the branch closures are also seeing people having to travel long distances in order to access financial services and cash.

Gareth Shaw, head of Which? Money, said: “These closures will come as a blow for all those who rely on access to traditional banking services across the UK. Despite the switch to digital ways of banking and paying, millions of consumers still need access to cash.

“It is vital for a regulator to be given responsibility for ensuring that people have access to the services they rely on.”

Santander also announced that it will spend £55 million refurbishing 100 branches over the next two years to “focus on personal service, convenience and community engagement”.

Susan Allen, head of retail and business banking at Santander, said: “The way our customers are choosing to bank has changed dramatically in recent years, with more customers using online and mobile channels.

“We have had to take some very difficult decisions over our less visited branches, and those where we have other branches in close proximity.”

The lender has around 15 million customers and as at the end of last June employed around 24,200 people.

The Daily Express has highlighted the way in which bank closures are speeding up the death of Britain’s high streets in our Save The High Street crusade.