Santander Bank to Close 18 Branches in the Northeast

News Summary

Santander Bank has announced it will close 18 branches across the Northeast, impacting six locations in Massachusetts and one in Rhode Island. This decision aligns with the bank’s strategy to refine its branch footprint while enhancing digital banking capabilities. The affected Massachusetts branches are located in Salem, Woburn, Worcester, Middleton, Norwell, and Boston. The closures, scheduled from July 31 to August 21, 2023, represent approximately 4.5% of Santander’s U.S. branch network. The bank is also expanding with a new branch opening in Miami.

Massachusetts

Santander Bank has announced plans to close 18 branches across the Northeast, affecting six locations in Massachusetts and one in Providence, Rhode Island. The branch closures, detailed in federal regulatory filings, were reported to the Office of the Comptroller of the Currency last week. These closures are part of a broader strategy to refine Santander’s branch footprint and enhance digital banking services.

Details of the Closures

The affected Massachusetts branches are situated in various locations:

• Salem – 22 New Derby St.
• Woburn – 19 Pleasant St.
• Worcester – 655 Park Ave.
• Middleton – 39 South Main St.
• Norwell – 69 Washington St.
• Boston – 346 Congress St., Seaport area.

In Rhode Island, the branch earmarked for closure is located at 280 Atwells Ave. in Providence’s Federal Hill neighborhood. Notably, this Providence branch was the site of a significant robbery in 2023, where nearly $488,000 was stolen in an incident linked to a former branch operations manager and her boyfriend.

Impact on Branch Network

The upcoming closures will account for approximately 4.5% of Santander’s total U.S. branch network. Santander currently operates 401 locations throughout the United States, with 127 in Massachusetts, 20 in Rhode Island, and 11 in New Hampshire. In addition to the Massachusetts and Rhode Island closures, branches in New Hampshire, Pennsylvania, New Jersey, and New York City, including two branches in the metro area, will also be closed.

Bank Strategy and Digital Focus

This move comes as part of Santander’s broader strategy to adapt and modernize its retail banking operations. The bank is investing in enhanced digital banking capabilities to better serve customer needs. Earlier this year, Santander closed branches in Middletown, Connecticut, and another in Pennsylvania, indicating a consistent trend in restructuring its branch operations.

Market Position

Santander ranks as the third-largest bank in Massachusetts and the fourth-largest in Rhode Island based on deposits. It holds a 6.79% market share in Rhode Island, managing more than $2.8 billion in deposits. In line with its digital ambitions, Santander has launched Openbank, an online banking platform, looking to roll out new financial products designed to attract deposits.

Future Developments

Despite the closures in the Northeast, Santander is also expanding its footprint with plans to open a new branch in Miami’s Worldcenter, marking the first Openbank-branded branch in the United States. The closures are scheduled to take effect between July 31 and August 21, 2023.

International Strategy

The U.S. branch closures coincide with similar strategies in the United Kingdom, where Santander plans to reduce its branch network by 95 locations, equating to one-fifth of its total branches there. This restructuring reflects a global trend among banking institutions to streamline operations and prioritize digital banking solutions.

Deeper Dive: News & Info About This Topic

• NBC Boston
• Wikipedia: Santander Group
• Providence Business News
• Google Search: Santander Bank closures
• Boston Globe
• Encyclopedia Britannica: Banking
• American Banker
• Google News: Santander Bank digital banking
• BBC News