Santander to close 18 of its U.S. locations by the end of August
In the first quarter of 2025, a significant shift towards digital banking was evident as several banks, including Santander, announced branch closures across the U.S. and U.K.
Santander, a leading global bank, plans to close 18 U.S. branches by August, following the closure of 38 TD branches by June 5. This move is part of a broader industry trend, as banks respond to declining in-branch visits, cost pressures, and the need to invest in digital services.
The U.S. branch closures include six locations in Massachusetts, four in New Jersey, four in Pennsylvania, two in New York, one in New Hampshire, and one in Rhode Island. Notably, Wells Fargo had 23 net branch closures, while U.S. Bank had 50, and Flagstar Bank plans 60 closures for the year.
The de-emphasis on branch banking and shift towards digital banking has been in the works for several years. In the U.K., the closures were attributed to "a rapid movement of customers choosing to do their banking digitally."
Santander's U.S. digital bank, Openbank, launched in October. Openbank aims to provide U.S. consumers with the digital banking experience of a FinTech and the strength and stability of a leading global bank.
In February, Openbank hit $2 billion in deposits, indicating a growing preference for digital banking among consumers. Santander's aim is to become a national, digital bank with branches, reflecting the importance of maintaining a physical presence while focusing on digital services.
Other banks are also planning closures in the upcoming months. The affected branches are strewn throughout the Northeast and consist of 4.5% of Santander's roughly 400 U.S. locations.
This strategic response to the changing banking landscape aims to provide customers with more accessible and convenient banking through digital channels while controlling operational costs. The closures are set to take place between July 31 and Aug. 21.
[1] "Santander is closing branches in the U.S. and U.K. primarily due to the increasing shift in customer preferences towards digital banking." [2] "The shift aims to provide customers with more accessible and convenient banking through digital channels while controlling operational costs in a changing banking landscape."
[1] "Given the growing preference for digital banking among consumers, Santander is closing branches in the U.S., such as the 18 planned for August, to offer customers more accessible and convenient digital services."
[2] "As part of a broader industry trend, Santander is strategically responding to the changing banking landscape by focusing on digital services, aiming to control operational costs and provide customers with more efficient banking experiences."
