Bad News from Banco Santander in the United Kingdom: Ana Botín Announces Massive Closures

Banco Santander has announced a restructuring plan for its UK subsidiary that includes the closure of 95 branches and could affect up to 650 employees. Of these, 100 could be relocated. But everything has a reason, and its head, Ana Botín, has provided the relevant explanations.

The entity has indicated that this measure responds to the need to "adapt to the changing needs of customers." All this in a context where digitalization has reduced the demand for in-person services. The plan also includes transforming the business model in several of its offices.

In this regard, Santander will implement 18 branches without a counter and 36 with reduced hours. Meanwhile, it will maintain 290 full-service branches and five Work Cafés. This model aims to optimize the customer service network through new service strategies.

Customer Concerns

With these closures, the bank's subsidiary will reduce from 444 offices to 349. To mitigate the impact on customers, the entity has assured that 93% of the British population will continue to have access to a branch. Additionally, they have reminded that post offices also offer basic banking services.

Furthermore, all closed branches are located less than a mile from one of these offices. The decision is part of an investment program in which Santander has allocated "tens of millions of pounds." All this with plans to modernize another 50 during the next fiscal year.

"Closing a branch is always a difficult decision, and we spend a lot of time assessing how to minimize the impact on our customers," the bank has highlighted. These changes in the British subsidiary come in a context of speculation about a possible sale of it. A rumor that was recently denied by Santander's chairwoman, Ana Botín.

Ana Botín Responds to the Rumors

"We love the UK," the executive assured, insisting that this market is "essential" within the bank's global strategy. She also reaffirmed that the British subsidiary is profitable and contributes to the entity's diversification by operating in a currency other than the euro. Despite economic challenges, Ana Botín has expressed confidence that the group will achieve over 12.5 billion euros in profit.

However, she has acknowledged that most of the growth will come from America, especially from the United States and Mexico. In this regard, the bank has announced an agreement with Verizon to attract deposits through Openbank. In addition to betting on the Mexican market, where it seeks to gain share in a still underdeveloped banking sector.