Santander (BME:SAN) is set to close 140 branches in the UK, placing 1,270 jobs in the firing line.
The Spanish bank said that this was in response to changes in how customers bank, with the number of transactions carried out via branches falling by 23% over the past three years.
Conversely, transactions via digital channels have grown by 99% over the same period, with customers increasingly turning to the ease of online banking.
Susan Allen, Head of Retail and Business Banking, said:
“The way our customers are choosing to bank with us has changed dramatically in recent years, with more and more customers using online and mobile channels. As a result, we have had to take some very difficult decisions over our less visited branches, and those where we have other branches in close proximity.
“We will support customers of closing branches to find alternative ways to bank with us that best suit their individual needs. We are also working alongside our unions to support colleagues through these changes and to find alternative roles for those impacted wherever possible.”
In addition, Santander said 100 branches will be refurbished over the course of the next two years with an investment of £55 million.
Santander is not the only bank moving towards branch closures.
Last year, HSBC (LON:HSBA) announced the closure of 62 of its UK branches, citing changes in customer banking habits.
Similarly, in September, RBS (LON:RBS) revealed plans to cut 54 branches, resulting in the loss of 258 jobs.
Shares in Santander are currently trading +0.78% as of 10:45AM (GMT).
