Santander is set to shut 44 of its bank branches as part of a restructuring of its store network, placing 291 jobs at risk.

The banking giant attributed the decision to ‘changing customer behaviour’ as increasing numbers of customers shift to online banking.

Branches earmarked for closure will be replaced by a weekly Santander Local service operating from venues such as libraries or community centres, or through Banking Hub counters available at Post Office locations, the company confirmed.

In a statement, the bank said: “Approximately 291 colleagues would be placed at risk of redundancy if the proposals proceed after consultation with the unions has been completed; however, there will be a number of redeployment opportunities that impacted colleagues can apply for.”

After the changes take effect, Santander’s branch network will comprise 305 branches, including 244 full-service branches, 19 counter-free branches, 36 reduced-hour branches, and six Work Cafés, alongside 111 Santander Locals.

Santander has witnessed a substantial surge in customers opting to bank online, with 96% of all transactions now being conducted digitally.

The business recorded a 64% increase in digital transactions since 2019 whilst financial transactions completed in branches fell by 66% over the same timeframe. The volume of financial transactions taking place in bank branches has declined by 13% in the past year alone, Santander said.

A spokesperson for Santander UK stated: “In response to a continuing and sizeable shift towards customers using digital banking, we are making changes to our branches to better support our customers.

“We will continue to invest in both our branch network – comprising of full-service branches, counter-free branches, reduced-hour branches, Santander Locals, and our increasingly popular Work Cafés – as well as our digital banking services, so we can be there to support our customers however they choose to bank with us.”

Santander confirmed it would reach out to all potentially vulnerable customers by telephone to assist them in locating alternative branches or accessing digital, telephone and Post Office banking facilities.