Banking institution set to shut down 23 additional branches this month, dealing a significant blow to UK's street retail sectors.
Brace yourself for some major shakeups on UK high streets, as a leading bank is pulling the plug on 23 branches this month, marking a tough time for struggling British high streets.
This move is the initiation of Santander's branch closures, following their announcement in March that they would shut at least 95 sites nationwide. If you're keen on staying updated on financial news, don't forget to sign up for our Money newsletter.
Remember the old saying, "out with the old and in with the new"? Well, in this case, the "old" is physical banking, as Santander has pointed the finger at customers moving more towards online banking as the prime reason for the closures. According to their statement on the website, "Since our major review in 2021, many of our customers are choosing to use mobile, online, and telephone banking more, and branches less."
However, there's a darker side to this story. Concerns are mounting about the impact these closures might have on vulnerable individuals, especially older people who have limited access to online facilities. Charities, such as Age UK, are campaigning to maintain some in-person banking options, as 4 million older Britons are struggling with managing their finances online. Caroline Abrahams, charity director at Age UK, voiced her concerns, stating, "The disappearance of face-to-face banking risks cutting a significant minority of the older population out of an essential service, making it difficult if not impossible for them to manage their money and maintain their independence."
If you're wondering, "What's the alternative?" Banking Hubs have been established to offer access to cash and services, regardless of the bank you're with.
In addition to closing a whopping 95 branches nationwide, Santander will also be making alterations to the surviving branches. This includes reduced opening hours, converting some to 'counter-free' businesses, and the introduction of work cafes. These cafes serve as co-working spaces, bookable meeting rooms, and banking facilities, open to anyone, whether you're a Santander customer or not.
The shift towards digital banking is a wider trend, with banks prioritizing online services. More than 6,300 bank and building societies have closed since January 2015, averaging roughly 53 store closures per month. Other major banks are also joining the trend, with 102 branches set to close this month across various institutions, including Lloyds, Natwest, Halifax, and Santander. Meanwhile, Nationwide has pledged to keep its nearly 700 branches open until the start of 2028, as they claim an increase in store visits.
Stay tuned, as Santander plans to close even more stores in the coming months. The closing dates of 18 branches still remain undisclosed, while reduced hours will take effect on June 30, affecting 36 stores.
[1] https://www.bcha.org.uk/statistics-and-data/banking-statistics/bank-and-building-society-branch-network-data/[2] https://www.gov.uk/government/publications/access-to-banking-strategy-update-access-to-cash-4/access-to-cash-4[3] https://www.parliament.uk/business/committees/committees-a-z/lords-select/economic-affairs-finance-bill-committee/news-parliament-2019/non-cash-payments-report-published-17-11-19/[4] https://www.ftadviser.com/2022/03/25/market-movers/why-uk-banks-are-closing-branches-in-record-numbers/[5] https://www.fcagateway.org.uk/node/8880/at-a-glance
- The shifting trend in the industry is evident as Santander, along with other major banks like Lloyds, Natwest, Halifax, and others, are closing a combined total of 102 branches this month, prioritizing digital and online services.
- This move towards digitization in the banking-and-insurance sector is raising concerns, particularly for vulnerable individuals such as older people who have limited access to online facilities, as 4 million older Britons struggle with managing their finances online.
