UPDATE: MP seeks meeting with bosses after closure announcement of Santander branch in Louth

Further changes include reduced hours at 36 sites and 18 branches going counter-free from June.

Santander’s branch at 21 Market Place in Louth will be closing at the end of business on June 17.

This comes after other branch closure announcements this year with Natwest in the Market Place set to go on May 7 and Lloyds in Mercer Row to close on May 28. As yet there is no proposal to offer a Banking Hub alternative, as Santander points to alternative branches in Grimsby (15 miles away) and Lincoln (26 miles away). Alternatively customers are directed to use Post Offices and ATMs at the other remaining bank branches in town, namely HSBC and Halifax.

Louth and Horncastle MP Victoria Atkins commented on the news: “The continued erosion of face-to-face banking services will hit the most vulnerable customers the most. I have requested a meeting with Santander following their decision and will push for them to continue to provide greater support for their customers moving forwards.”

More than a third of Santander’s 444 branches will be affected by the closures. Following the overhaul, the bank will continue to operate 349 branches, including 290 full-service locations and five so-called work cafés.

If approved after consultations with unions, the plans could impact over four per cent of Santander UK’s 18,000-strong workforce - around 750 people.

The changes come as more customers shift to online banking; Santander says digital transactions have surged by 63 per cent since 2019, while in-branch transactions have dropped by 61 per cent.

In a statement, the Spanish-owned bank says the decision is off the back of a recent review: “We last did a major review of our branches in 2021. Since then, many of our customers are choosing to use mobile, online and telephone banking more, and branches less.”

Santander said: “Before reaching the decision to close our Louth branch, we looked at the way our Louth branch customers are choosing to bank with us, the proximity of other Santander branches in the

surrounding area, the availability of other ways to bank in the local area, such as the Post Office, ATMs and Banking Hubs, and the impact it would have on our staff.”

They stated that 85 per cent of customers using their Louth branch already use a variety of ways to do their banking, 70 have used online, mobile or telephone banking services, and 25 per cent also use another Santander branch.

They claim that, from July to December 2024, just 98 of their personal customers have only used the Louth branch for transactions three times or more. Six business customers have solely used Louth branch and transacted three times or more, and 100 customers have made a general enquiry three times or more and only used that branch.

To support affected communities, Santander plans to recruit 95 new community bankers in areas where branches are closing and aims to redeploy some impacted staff into these roles. They plan to visit spaces in the local area each week, such as libraries and community halls, to help customers with banking.

They are also working with LINK, an independent industry body, to make sure customers continue to have access to cash and banking services, but as yet no Banking Hub has been recommended.

Santander has pledged to reach out to regular personal and business customers who, due to their personal circumstances, might have an increased vulnerability risk by not having access to the branch.

They have also notified local organisations and members of the community, such as the local MP, councillors, Post Office senior representatives, Citizens Advice, Chamber of Commerce, local residential and care home providers, housing associations and community groups.