Expensive acquisition of a banking competitor by a British financial behemoth leads to the closure of 38 branches in July, causing a question of proximity for interested parties.
In a move that has raised concerns among older customers, Santander has announced plans to close numerous branches across the UK and the US. The decision, driven by a shift towards mobile, online, and telephone banking, will see about 95 UK branches close by the end of the year, with 38 branches set to close this month and another 20 over the coming months [1][2][3].
The closure of these branches has led to concerns about the loss of personal service and easy local access, particularly among those who prefer face-to-face banking or find digital alternatives less comfortable or trustworthy. Age UK, a charity that supports older people, has been campaigning for banks to maintain in-person banking services, highlighting the importance of these services for older customers who may need help with complex banking tasks [4].
To address these concerns and support customers, Santander is offering alternatives such as encouraging the use of digital banking channels, introducing new branch formats, and adapting remaining branches with reduced hours and counter-free models [1][3]. The bank aims to streamline services while maintaining some physical presence.
Last month, Santander cut the opening hours of 36 of its remaining banks in half, with other branches made counter-free [5]. The bank also set up 73 banking hubs across the UK to combat the issue of decreased face-to-face banking services [6].
In a bid to expand its customer base, Santander has agreed to acquire TSB for £2.65 billion. The deal, which is still subject to shareholder approval, will add five million customers to Santander's existing 14 million [7]. No immediate changes are expected due to the acquisition.
TSB customers will be notified of any changes well in advance [8]. The bank has assured its customers that it will continue to provide them with the best possible service, whether that's through digital channels or in-person services at the remaining branches or banking hubs.
Caroline Abrahams, charity director at Age UK, expressed the need for banks to maintain face-to-face banking services, emphasising the importance of personal interaction for older customers [4]. Santander acknowledges the difficulty of these decisions and attempts to minimise the impact on customers by carefully assessing closures and adapting their services accordingly [1][2].
References: [1] Santander to close 95 UK branches by end of 2025, BBC News, 2021,
- In response to concerns from older customers and charities like Age UK, Santander has been offering alternatives to in-person banking, such as adapting remaining branches, encouraging digital banking channels, and introducing new branch formats.
- While Santander aims to expand its customer base through mergers and acquisitions, like the planned acquisition of TSB, the bank recognizes the importance of maintaining some physical presence and minimizing the impact on older customers who prefer face-to-face banking services.
