Digital transformation and alternative formats
Santander has indicated that digital engagement continues to strengthen, with over one-fifth of current accounts now opened through online channels.
The bank has experienced a 56% increase in mobile banking users as customers shift away from traditional branch-based services.
As part of its evolving physical presence strategy, Santander is expanding its “Work Café” concept—a hybrid model that combines banking services with co-working spaces.
These locations offer facilities for cash withdrawal and banking transactions while providing superfast Wi-Fi and meeting spaces for businesses and community groups.
Currently, five Work Cafés operate in the UK, including two recently opened in London at Cheapside and High Street Kensington.
Industry-wide trend and access concerns
Santander’s announcement follows a January statement from Lloyds Banking Group detailing plans to close 136 branches across its Lloyds, Halifax and Bank of Scotland brands between May 2025 and March 2026.
The consistent reduction in physical banking locations has prompted concerns about access to financial services, particularly in rural communities.
Some UK Members of Parliament have criticised these closures, arguing they leave people in less populated areas “frozen out” of essential banking services.
