Santander, one of the UK's largest banking institutions, has officially announced its intention to close 44 branches across the country in 2026. This significant restructuring move places approximately 300 jobs at risk of redundancy, as the bank shifts its operational focus towards digitalisation and streamlined services.
Driven by Simplification and Automation
The bank has attributed these closures to a strategic push for simplification and automation within its business model. In a statement, Santander explained that the decision is part of a broader effort to enhance efficiency and adapt to changing customer behaviours, which increasingly favour online and mobile banking solutions over traditional in-branch visits.
Community Support to Continue
Despite the branch closures, Santander has committed to maintaining face-to-face support for local communities. The bank plans to replace the shuttered branches with Community Bankers, who will operate from designated Santander Local outlets or, where necessary, from shared Banking Hubs. This initiative aims to ensure that customers, particularly those in underserved areas, continue to have access to personalised banking assistance and financial advice.
Financial Context and Provisions
This announcement follows Santander's recent financial report, which highlighted a 14% increase in pre-tax profits to £1.51 billion for the year 2025. However, the bank is also navigating significant financial provisions related to ongoing industry challenges.
Santander has bolstered its car loan compensation fund to £461 million, addressing the fallout from the motor finance mis-selling scandal. An additional £183 million has been set aside for this purpose, supplementing the £295 million provisioned in 2024. The bank has cautioned that significant uncertainties remain regarding the extent and timing of redress payments, noting that the ultimate financial impact could vary materially from current estimates.
Branch Network Evolution
Following these closures, Santander's network of full branches will be reduced to 244 locations. However, the bank anticipates expanding its presence through the planned acquisition of smaller rival TSB, which is expected to add more branches to its portfolio. This strategic consolidation reflects broader trends in the UK banking sector, where institutions are increasingly optimising their physical footprints in response to digital transformation and cost pressures.
Santander, which serves over 13 million customers in the UK, remains a key player in the national financial landscape. The branch closures underscore the ongoing evolution of banking services, as traditional models give way to more automated and community-integrated approaches. Customers and employees alike are advised to stay informed through official channels as the 2026 implementation date approaches.
