High street bank with more than 400 UK branches and 14million customers is ‘considering quitting Britain’ in fresh blow
A MAJOR high street bank with more than 400 UK branches and 14million customers is reportedly considering quitting Britain.
Santander is understood to be weighing up the drastic move as part of a strategic review of its future - in what would be an embarrassing loss for the Labour government.
If executives opt to leave, the Spanish banking giant would look for a buyer for operations here, reports the .
The proposal is said to have been partly triggered by frustration over costly UK rules introduced thanks to the financial crisis.
This led to lower returns than in other markets, while the bank has also set aside £295million to cover costs from the car finance scandal.
An estimated £13billion could be owed in compensation payouts with experts fearing this figure could actually double.
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It comes days after Chancellor Rachel Reeves told industry regulators they need to help revive Britain's floundering economy "by tearing down the regulatory barriers that hold back growth".
She added: "I am determined to go further and faster to kickstart economic growth, which is the number one priority in our Plan for Change.
"That means generating investment, driving reform and a relentless commitment to root out waste in public spending, and today I will be pressing regulators on what more they can do to deliver growth."
The FT reported that one ex-Santander executive said it had "always been a possibility" that executive chair Ana Botín would flog the bank as a result of so-called ringfencing rules.
The bank employs around 20,000 people across 444 branches, while holding £200billion in customer lending.
Late last year Santander said it was looking to cut 1,400 jobs.
A spokesman for Santander UK said: "The UK is a core market for Santander and this has not changed."
Earlier this month, the bank told customers it is still recovering cashed paid out by accident more than three years ago.
On Christmas Day 2021, around 75,000 customers were accidentally paid twice by the bank in a major blunder.
Around £130million was paid twice from 2,000 business accounts, although Santander footed the bill for the second payments.
Meanwhile, money guru Martin Lewis has warned customers considering changing banks to think twice.
It comes after a series of banks including Santander, First Direct, Nationwide, NatWest, Lloyds offered free cash to make the switch.
He said: "If you do one switch, it's an application on your credit file which has a very minor, short-term negative effect.
"Lots of those in a short space of time can have an impact. Banks also like to see evidence of longevity, so that's also slightly negative.
"So I wouldn't switch my bank account if I had a mortgage application during the next two months."
BANKING HUBS
Communities across the UK are campaigning for banking hubs - which have become a vital lifeline for towns left without a bank branch to access key services.
Banks have closed more than 6,000 branches since 2015 as providers push customers to use online and app-based services instead.
In response, banking hubs have been created to give residents the chance to manage their money face-to-face and speak to staff from all of the major banks.
Most banking hubs are open from Monday to Friday from 9am to 5pm each week.
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They are owned by Cash Access UK and are operated by the Post Office.
What services do banking hubs offer?
BANKING hubs offer a range of services to bridge the gap left by the closure of local branches.
They are operated by the Post Office and allow customers to perform routine transactions such as make deposits, withdrawals and balance enquiries.
Each hub has private booths where customers can discuss banking matters with staff from their respective banks.
Staff from different banks are available on a rotational basis, which ensures that customers have access to a wide range of banking services.
Customers can also receive advice and support on various financial products and services including mortgages, loans and savings accounts.
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