Santander has issued a warning to customers aged 60 and above about upcoming bank branch closures that could affect their access to in-person banking services. Starting next week, 10 branches will close, followed by another 37 in July.
These closures are raising concerns, especially for older customers who rely on face-to-face banking services.
Concerns for Older Customers
The upcoming closures are particularly troubling for older people, especially those in their 60s and 70s, who may struggle to manage their finances online.
Age UK, an organization that supports older people, has raised alarms about the impact these closures could have. The charity claims that four million older Britons are unable to manage their finances through digital banking, and losing access to physical branches could leave them without essential services.
Caroline Abrahams, director of Age UK, stressed that physical spaces like bank branches and banking hubs are vital for older customers to perform in-person transactions. She warned that without these services, many older people could face difficulties managing their money and maintaining their independence.
Impact of the Closures
Santander’s decision to close branches is part of a wider trend where more customers are turning to digital banking. This shift is a significant reason for the bank’s move to reduce its branch network. After the closures, Santander will be left with 349 branches, down from 444.
To address the gap, the bank will rely on 95 “community bankers” who will visit local areas on a weekly basis, offering services in places like libraries. However, this move may not be enough for some customers who prefer or need in-person service.
Santander has explained that the closures are a result of customers’ increasing preference for online banking, making physical branches less necessary for many. The bank said that the decision to close branches is always carefully considered to minimize the impact on customers, but the shift to digital banking is unavoidable.
Criticism from MPs
Many MPs have criticized the closures, especially in rural areas, where customers may have limited access to alternative banking options. Tulip Siddiq MP noted that some parts of the population remain “digitally excluded” and called for improved access to digital services.
MP Ian Lavery expressed concern that the closures would lead to “banking deserts” in certain areas, making it even more difficult for vulnerable people to access essential services.
Additionally, Labour’s Joe Morris MP pointed out that these closures would not only be an inconvenience to constituents but could also harm the local economy in rural areas.
He emphasized the need for immediate action to protect vulnerable individuals and ensure that they continue to have access to important banking services.
As Santander moves forward with its branch closures, older customers, particularly those in rural areas, may face significant challenges. The reduction of in-person banking services could leave many struggling to manage their finances and maintain their independence.
While digital banking is becoming more popular, it is essential to consider the needs of those who are not able to use these services. The ongoing debate highlights the need for balance between digital innovation and accessibility to ensure that all individuals, especially the elderly, have fair access to essential services.
FAQs
Why is Santander closing so many branches?
Santander is closing branches due to a growing number of customers choosing to do their banking online. The bank has found that many people no longer need in-person banking services, which has led to branch closures.
How will older customers be affected by these closures?
Older customers who are not able to manage their finances online could face difficulties. Age UK has raised concerns that the loss of physical branches may lead to challenges in managing money and maintaining independence.
What is Age UK’s stance on these closures?
Age UK is campaigning for the continuation of in-person banking services, especially for older people who cannot access digital banking. They believe face-to-face banking spaces are vital for many elderly individuals.
Will Santander provide any support for affected customers?
Santander has announced plans to send ‘community bankers’ to local areas to offer services in places like libraries. However, this may not fully replace the in-person services offered at bank branches.
How are MPs reacting to the closures?
Many MPs, particularly those in rural areas, have criticized the closures, arguing that they will leave people without access to essential services and harm local economies. Some have called for more support for digitally excluded populations.
