Santander UK has announced plans to cut costs by £433 million by 2028 through increased use of artificial intelligence, as part of a broader group-wide strategy to achieve over £860 billion in extra revenues and cost savings from AI between 2026 and 2028.
Cost Savings and AI Strategy
Banco Santander expects half of the £860 billion target to come from cost-cutting measures, with automation, productivity gains and process simplification driving the savings. Ricardo Martin Manjon, Banco Santander’s chief data and AI officer, stated: “Santander is moving from AI ambition to execution. One year after setting out our ambition to become a data and AI-first bank, artificial intelligence is already helping us improve how we work, serve customers, manage risk and run the bank.”
He added: “Santander already has a clear AI strategy, measurable impact and the scale to turn selected capabilities into group-wide value. We are not starting from theory: AI is already improving processes, supporting our teams and opening new opportunities across the bank. Now the opportunity is to move forward with focus, discipline and ambition.”
Staff Access to AI
AI access is being rolled out to all of Santander’s 185,000 staff worldwide, including 15,000 in the UK. Currently, 40,000 employees are already using AI tools. Potential job cuts have not been confirmed as part of the cost-cutting plans.
Branch Closures
Santander, which has branches in Birmingham, has already closed 40 branches scheduled for 2026, with four more closures planned. These closure dates have yet to be confirmed but all will occur before February 1, 2027. The upcoming closures include Leighton Buzzard, Ormskirk, Whitehaven, and Wilmslow, all by the end of January 2027.
