Santander customers to be ‘unaffected’ by possible UK exit but banking sector fears surge (Image: Getty)
Fears are surging that banking giant could pull out of the UK after reports surfaced over the weekend.
The Spanish firm, which has 14 million active customers in the UK, is seemingly frustrated by regulatory hurdles and poor returns compared to overseas markets and is , according to the .
A Santander UK spokesperson said: “We remain focused on providing excellent products and services to our 14 million customers in the UK. The UK is a core market for Santander, and this has not changed.”
However, concerns are soaring about the impact on customers if the rumoured exit goes ahead. Ben Thompson, deputy CEO of , suggested a sale is the most likely scenario, with Santander’s UK assets appealing to potential buyers.
He said: “In this climate, I would anticipate the bank’s assets being attractive to a suitor if a price could be agreed. In that case, customers – whether borrowers or savers – would be largely unaffected.”
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Santander has 14 million active customers in the UK (Image: Getty)
With over 20,000 staff, more than 400 branches, and around £200billion in consumer lending, any sale would be subject to intense regulatory scrutiny.
The Financial Conduct Authority (FCA) assured that consumer duty means all financial services firms must act to deliver good outcomes for consumers, including through any change in the business.
Concerns instead lie with competition in the UK banking sector.
Alastair Douglas, CEO of personal finance app , said: “The worry is that if Santander is taken over by another large bank, it could harm competition and reduce choices for consumers.”
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He stressed that while a sale might not affect the safety of people’s money, it could shrink the number of available banking options, which could undermine customer outcomes.
Mr Douglas said: “The Government needs to create a safe and regulated environment that encourages innovation, investment, and better customer outcomes. Instead, it feels like we’re travelling in the opposite direction.
“In recent years, new UK banks and fintech have done a great job of creating a better banking system, utilising app technology and open banking data to put people in control of their money and data. This is where we need to see ongoing and long-term support.”