Branch transactions at Santander have fallen 23% in the last three years, while digital transactions have risen by 99%.
SHARE:
Spanish-owned bank Santander has announced plans to cut its branch network by almost a fifth, putting 1,270 jobs at risk.
Of the 140 closures, 26 are due to be in London.
The bank claims the closures are down to “changes in how customers are choosing to carry out their banking”.
Branch transactions at Santander have fallen 23% in the last three years, while digital transactions have risen by 99%.
However, many people are doing their banking online not out of choice, but because of limited opening hours and staff.
Santander stated that its remaining network of 614 branches will be made up of larger branches with improved facilities, whist other branches will begin using the latest technology to offer more convenience to customers.
“We continue to believe that branches have a vital role to play”, said Susan Allen, head of retail and business banking.
The bank plans to spend £55m over the next two years refurbishing 100 branches to achieve this new vision.
The decision by Santander is part of a growing trend. Consumer group Which? calculated that at least 3,000 closures have been announced since 2015, which means more than 60 branches are disappearing on average every month.
Figures from the Office for National Statistics also show that there has been a fall of a third in the number of branches since 2010.
The main factor is cost, given that maintaining a bank branch and paying staff becoming is increasingly expensive. Selling the properties can generate funds as well.
Online banking is on the rise too, but a third of the country still does not bank online.
The Santander closures will start on 25 April.
Submitted Article
Headline
Short Headline
Standfirst
Published Article
HeadlineSantander to shut 140 branches amid ‘changing’ banking habits
Short HeadlineSantander to close 140 branches
Standfirst26 of the closures are expected to be in London.
Spanish-owned bank Santander has announced plans to cut its branch network by almost a fifth, putting 1,270 jobs at risk.
Of the 140 closures, 26 are due to be in London.
The bank claims the closures are down to “changes in how customers are choosing to carry out their banking”.
Branch transactions at Santander have fallen 23% in the last three years, while digital transactions have risen by 99%.
However, many people are doing their banking online not out of choice, but because of limited opening hours and staff.
Santander stated that its remaining network of 614 branches will be made up of larger branches with improved facilities, whist other branches will begin using the latest technology to offer more convenience to customers.
“We continue to believe that branches have a vital role to play”, said Susan Allen, head of retail and business banking.
The bank plans to spend £55m over the next two years refurbishing 100 branches to achieve this new vision.
The decision by Santander is part of a growing trend. Consumer group Which? calculated that at least 3,000 closures have been announced since 2015, which means more than 60 branches are disappearing on average every month.
Figures from the Office for National Statistics also show that there has been a fall of a third in the number of branches since 2010.
The main factor is cost, given that maintaining a bank branch and paying staff becoming is increasingly expensive. Selling the properties can generate funds as well.
Online banking is on the rise too, but a third of the country still does not bank online.
