Santander Shuts Doors As Digital Banking Takes Over

Santander Bank is scaling back its physical presence in the northeastern United States as part of its shift toward digital banking. Eighteen branch closures reflect broader changes across the banking industry as customer preferences continue to move online.

According to American Banker, Santander will close 18 branches in Massachusetts, New Jersey, Pennsylvania, New York, New Hampshire, and Rhode Island.

These closures represent about 4.5 percent of its U.S. branch network and are scheduled between late July and August 2025. An American Banker article indicated the decision follows clear customer behavior trends, with fewer people relying on in-person services.

If you still rely on in-person banking, ask your branch staff how to access digital services before any announced closure. Most banks offer one-on-one help to get you started with mobile apps or online banking.

Digital habits are replacing branch visits

This shift is not unique to Santander. Across the industry, banks are adjusting to the long-term impact of digital adoption. In the United Kingdom, Santander is closing 95 branches, about 21 percent of its UK network.

The bank reported a 63 percent increase in digital transactions since 2019 and a 61 percent drop in branch visits, according to Reuters.

Although the pandemic accelerated the trend, many customers were already turning to mobile apps and websites for routine banking tasks. Features like check deposits, bill payments, and account management are now commonly handled without stepping into a branch.

Investing in digital-first platforms

In October 2024, Santander launched a U.S. digital platform called Openbank. As of May 2025, it had already attracted over $4 billion in deposits and more than 100,000 customers.

The platform is expected to expand to include checking accounts and certificates of deposit later this year, according to Santander’s May 22 press release.

Other banks are doing the same

Santander is not alone. TD Bank plans to close 38 branches in ten states and Washington, D.C. by June 2025. Wells Fargo and U.S. Bank have also consolidated branches in recent months, with U.S. Bank leading with 50 net branch closures and Wells Fargo closing 23 net branches in the first quarter of 2025.

These changes show that digital-first banking is becoming the standard response to changing consumer behavior, according to Banking Dive.

Adapting to a world with fewer bank branches

If your local bank branch is affected, now may be a good time to ensure you are comfortable using your bank’s app or website. Many offer secure messaging, budgeting tools, fraud alerts, mobile check deposits, and online bill pay.

These tools are designed to reduce the need for in-person support. If you still prefer face-to-face banking, local credit unions and community banks maintain physical branches and promote personal service as a competitive advantage.

Review your bank’s app or website for features you haven’t used yet, and set up alerts or tools that support your financial goals, like tracking spending or monitoring balances in real time.

Santander’s closures reflect a wider transformation. Banks are investing more in technology and less in real estate as they adapt to customers’ expectations. Understanding these changes can help you take advantage of new tools while staying in control of your finances.