Santander Bank said it will shutter 18 northeastern United States branches later this summer of 2025, or about 4.5% of Spanish banking giant’s about 400 U.S. offices. The branch closures, finalized to the Office of the Comptroller of the Currency in May of 2025, took effect from July 31 to August 21, 2025.
This tactical downsizing is only one aspect of Santander’s general shift to digital banking services, as a sign of the stepped-up pace of consumer behavior alteration that accelerated after the COVID-19 pandemic. Santander operates more than 700 branches nationwide, with Massachusetts having the most of any state at 229 locations.
Massachusetts leads with six closures
Massachusetts will disproportionately feel the pain with six offices closing, the most of this round of eliminations. The individual Massachusetts offices closing are:
- Boston: 346 Congress Street
- Middleton: 39 South Main Street
- Norwell: 69 Washington Street
- Salem: 22 New Derby Street
- Woburn: 19 Pleasant Street
- Worcester: 655 Park Avenue
Other Northeastern states impacted
The other closures are spread out across five other states:
- New Jersey: Four locations, with closures at Hoboken (214 Washington Street), Newark (873 Broad Street), Wharton (40 S Main Street), and Pennington (2583 Pennington Road)
- Pennsylvania: Four locations, with closures in Philadelphia (2103 Hamilton Avenue), West Chester (50 W Market Street), Ephrata (370 N. Reading Road), and Harrisburg (235 N. Second Street)
- New York: Two locations closing in the Bronx (200 East 161st Street) and Staten Island (81 Water Street)
- New Hampshire: One office in Salem (541 South Broadway, Suite #100)
- Rhode Island: One office in Providence (280 Atwells Avenue)
Strategic shift towards digital banking
The closures coincide with Santander’s aggressive push into digital banking through its Openbank platform, which started in the United States in October 2024. The digital banking business has had growth exploding, reaching more than 100,000 customers in its first half year of operation and sitting on over $2 billion in deposits as of February 2025.
Swati Bhatia, Santander Bank Head of Retail Banking and Transformation, reiterated the bank’s strategic outlook: “Our goal is to be a digital, national bank with branches.” The transformation has been how the bank has reacted to the change in customers’ behavior, as the bank itself reported that digital transactions increased by 63% from 2019 to financial transactions through branches falling by 61% over the same periods.
Industry-wide trend
Santander’s closings reflect a broader industry trend of digital-first banking strategies. Big banks in the U.S. closed over 148 branches alone during the first quarter of 2025, led by U.S. Bank with 50 closures, followed by Wells Fargo with 23. Recently, on average, 1,646 bank branches per year have closed since 2018, and experts project physical branches will become a relic by 2041 if trends continue. Additionally, numerous smaller banks are quietly closing their branches, many of which remain unreported.
Effect on customers and communities
The closure of the branches has a direct impact on customers who use face-to-face banking, for instance, senior citizens and people in small communities who might now be forced to travel further to gain access to bank face-to-face services. Santander, however, asserts its new digital technology is capable of fulfilling simple banking requirements with the security of a global bank.
Although Santander is not releasing the amount of jobs affected by the closures, the bank reported it is working to transition affected employees to other positions within the company. The bank employs about 9,000 U.S. employees at its branches and has more than 2 million customers in eight states within the northeastern United States.
Santander’s plan to shrink branches fits with its goal to maximize operating efficiency by heavy investment in digital infrastructure and capabilities. The bank will further develop Openbank’s services from its current high-yielding savings account to certificates of deposit, checking accounts, and payment services in 2025 and beyond. This two-pronged approach of strategic branch reductions and online growth puts Santander well-positioned to compete aggressively in the new banking environment while maintaining its focus on customer service through channels.
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