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Santander UK

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Santander UK plc
FormerlyAbbey National plc (1988–2010)[1]
Company typePublic limited company
IndustryFinance and Insurance
Predecessor
Founded11 January 2010
HeadquartersLondon,England, UK
Key people
Mike Regnier (CEO)
ProductsFinancial services
Increase£4.956 billion (2022)[2]
Increase£1.394 billion (2022)[2]
Total assetsDecrease£285.2 billion (2022)[2]
Number of employees
Decrease18,123 (2022)[2]
ParentSantander Group
Divisions
  • Cahoot
  • Santander Corporate and Commercial Banking
  • Santander Private Banking
Subsidiaries
Websitesantander.co.uk

Santander UK plc(UK:/ˌsæntənˈdɛər,-tæn-/,US:/ˌsɑːntɑːnˈdɛər/)[3]is a British bank, wholly owned by theSpanishSantander Group.Santander UK plc manages its affairs autonomously, with its own local management team, responsible solely for its performance.

Santander UK is one of the leading personal financial services companies in the United Kingdom, and one of the largest providers of mortgages and savings in the United Kingdom. The bank has circa 20,000 employees, 14 million active customers, 64 corporate business centres.[4]

The bank, with its head office in 2 Triton Square, Regent's Place, London, NW1 3AN, United Kingdom,[5][6]was established on 11 January 2010, whenAbbey Nationalplc was combined with the savings business and branches ofBradford & Bingleyplc, and renamed Santander UK plc.Alliance & Leicesterplc merged into the renamed business in May 2010.

In a March 2020 moneysavingexpert poll, customers satisfaction with the levels of customer service ranked Santander second among major high street banks.

In October 2011,Moody'sdowngraded thecredit ratingof twelve financial firms in the United Kingdom, including Santander UK, blaming financial weakness.[7]In June 2012, Moody rated Santander UK as being in a more financially healthy position than its parent company, Banco Santander. Less than 1% of Santander UK's business is held abroad.[8]

History

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Establishment

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The bank has its origins in three constituent companies—Abbey National,Alliance & LeicesterandBradford & Bingley—all former mutualbuilding societies.

Abbey National, trading as Abbey, had been bought by the Santander Group in July 2004 for £9 billion. Santander purchasedAlliance & Leicesterin the middle of September 2008,[9]followed by the branches and savings business ofBradford & Bingley,which had been nationalised byHM Governmentduring the2008 banking crisis.[10]

Abbey National and the savings business and branches of Bradford & Bingley were rebranded as Santander on 11 January 2010, and Abbey National plc was renamed Santander UK plc.Formula OnedriverLewis Hamiltonunveiled the first rebranded Santander branch that day in central London.

A further three hundred Abbey and Bradford & Bingley branches in London and south east England were rebranded that day, with branches in the rest of the United Kingdom following by the end of the month, by which time there were 1,045 Santander branches.[11]Alliance & Leicester plc merged into the bank on 28 May 2010,[12]and was rebranded by the end of the year.[13]

The bank retained the London headquarters of Abbey National and renamed other regional buildings under its own name.[14]The Abbey name was retained initially for Abbey International (now Santander Private Banking), and Abbey for Intermediaries (now Santander for Intermediaries), the division of the bank offering Abbey branded mortgages provided by Santander UK plc.[15]

The charitable divisions of Abbey, Bradford & Bingley and Alliance & Leicester were brought together to form the Santander Foundation.[16]

A rebranded branch of Santander in Peterborough
A branch of Santander inWetherby,West Yorkshirereplacing the town's previousAbbey NationalandBradford and Bingleybranches.

Due to the three way merger, Santander was in the unusual position of having more than one branch in many British high streets. In Northumberland Street,Newcastle upon Tyne,for example, there were three branches, which were formerly Abbey, Alliance & Leicester and Bradford & Bingley respectively.

Plymouthcity centre had four branches within three hundred metres, two of which were adjacent to each other. Until December 2019, Shrewsbury had two branches of Santander in the town centre.[17]In March 2012, the bank began to reduce the number of duplicate branches, identifying 56 that would close. Staff in the branches selected for closure were moved to other nearby branches.[18]

Alliance & Leicester Commercial Bank merged into Santander's business banking division, Santander Corporate Banking, in July 2009.[19]

Recent years

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On 9 March 2010, Santander sold the investment and asset management businessJames Hayto IFG Group for £35 million.[20]Later in the year, it was confirmed on 4 August that Santander intended to purchase the branches ofThe Royal Bank of Scotlandin England and Wales, and the branches ofNatWestin Scotland as part of a divestment of the business byThe Royal Bank of Scotland Group.[21]The deal collapsed on 12 October 2012.[22]

Santander has frequently been rated the worst bank for customer service in the United Kingdom,[23]although by July 2011 had sought to improve, notably by returning call centre operations to the United Kingdom from India.[24]During 2011, the bank put aside £538m to cover claims from customers for the misselling ofpayment protection insurance(PPI).[citation needed]

In December 2012, Santander reached an agreement to sell its store card business, which includes branded cards issued for retailers includingTopshop,House of FraserandDebenhams,toSAV Credit.[25]The sale was completed on 13 May 2013, though Santander continued to service accounts on behalf of SAV Credit until 1 April 2014.[26]

During 2014, the bank considered aninitial public offering(IPO), which was expected to be completed within two years.[27]In November 2014, the chief executive of the Santander Group said that an IPO would not be forthcoming until market conditions improved.[28]This view was repeated in July 2015.[29]

In January 2019, the bank announced plans to shut 140 branches during that year, reducing the size of its branch network to 614.[30]In March 2021 the bank announced that it intended to close a further 111 UK branches by August 2021.[31]

Between 2021 and 2022 the majority of the Bank's back office administration was outsourced toGenpactin India.

Services

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A branch of Santander on Briggate, Leeds
Santander Work Café onPark Row,Leeds

The bank provides a full range of personal, business and corporate accounts, includingcurrent accounts,mortgages,credit products and savings and investments. Santander operateonline bankingservices, includingmobile apps,and operate an internet only banking division brandedCahoot.Mortgages are also provided through Santander for Intermediaries, a division of the bank used bybrokers.The bank's branches on theIsle of ManandJerseyhave operated under the brand name of Santander International since 2016.[32]

Santander's Corporate and Commercial Banking division operates from a number of regional business banking centres across the United Kingdom. In May 2013, Ana Botin announced plans to double the number of centres to 70 within three years.[33]Santander UK is authorised by thePrudential Regulation Authorityand regulated by both theFinancial Conduct Authorityand the Prudential Regulation Authority.[34]

It is a member of theFinancial Services Compensation Scheme,UK Payments Administration,Bankers' Automated Clearing Services(BACS), theFaster Payments Service,theClearing House Automated Payment System(CHAPS), theCheque and Credit Clearing Company,theBritish Bankers' Association[35]and subscribes to theLending Code.[36]

Six digit accountsort codesare used in the range between 09-00-xx to 09-19-xx. Sort codes for accounts formerly held by Alliance & Leicester use the range 09-01-31 to 09-01-36.

In November 2009, Santander launched the first current account in the United Kingdom without fees (including unauthorised overdrafts) for its current and future mortgage customers.[37]In January 2010, the bank began waiving fees for customers using Santander'sautomated teller machinesin Spain, which traditionally would incur fees for transactions in a foreign currency.[38]

Sponsorships & brand ambassadors

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Santander-branded bicycles in London

Santander has sponsored theMcLarenFormula One team since 2007.[39]Santander said its sponsorship of McLaren had raised its brand awareness in the United Kingdom from 20 to 82 percent.[40]The bank announced a second team sponsorship, withScuderia Ferrari,in 2009.[41]

GolferRory McIlroysigned a sponsorship agreement with the bank in September 2011,[42]and in February 2013, it was announced that British heptathleteJessica Ennis-Hillwould become a brand ambassador.

In June 2019, TV presentersAnt & Decwere announced as new brand ambassadors, appearing frequently in their television advertising campaigns.[43]These adverts featured the pair running their own knock-off version of Santander and coming up with all sorts of impractical versions of Santander's services.

In February 2015, Santander was announced as the new sponsor ofTransport for London'sbicycle hire scheme,branded asSantander Cycles.Santander replacedBarclaysas title sponsor.[44]Santander also sponsors other bicycle hire schemes inLeicester[45]andMilton Keynes.

See also

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References

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  1. ^"SANTANDER UK PLC overview - Find and update company information - GOV.UK".Companies House.12 September 1988.Retrieved8 February2024.
  2. ^abcd"2022 Annual Report"(PDF).Santander. 2 March 2023.
  3. ^Wells, John C.(2008).Longman Pronunciation Dictionary(3rd ed.). Longman.ISBN978-1-4058-8118-0.
  4. ^"Our business".Santander UK plc.Retrieved22 February2019.
  5. ^"[https:// santander.co.uk/personal/support/customer-support/legal-information."
  6. ^"Registered Office details"(Archive). Santander UK. Retrieved on 28 May 2014. "Santander UK plc. Registered Office: 2 Triton Square, Regent’s Place, London NW1 3AN. United Kingdom"
  7. ^"UK financial firms downgraded by Moody's rating agency".BBC News.7 October 2011.Retrieved23 March2013.
  8. ^"Q&A: Is Santander UK a safe bank?".BBC News.9 June 2012.Retrieved23 March2013.
  9. ^"A&L shareholders approve takeover".BBC News. 16 September 2008.Retrieved10 August2009.
  10. ^"Spanish bank giant to acquire B&B".BBC News. 28 September 2008.Retrieved12 August2009.
  11. ^"Santander rebrands Abbey and Bradford & Bingley".BBC News.11 January 2010.Retrieved16 November2012.
  12. ^"Alliance & Leicester transfer to Santander UK plc".Santander UK plc. 2010.Retrieved16 November2012.
  13. ^Santander's decision to rename Alliance & Leicester 'disappointing'This is Business - East Midlands. 28 May 2009
  14. ^"Website legal".Santander UK plc.Retrieved10 December2011.
  15. ^"Santander to scrap Abbey for Intermediaries brand next Wednesday".Mortgage Strategy. 10 July 2013.Retrieved27 September2013.
  16. ^"About us".Santander Foundation bubbles. 2010.Retrieved10 December2011.
  17. ^"Santander to close one of its Shrewsbury branches".
  18. ^Jill Treanor (25 March 2012)."Santander to close bank branches to reduce overlap".The Guardian.Retrieved16 November2012.
  19. ^David Masters (2 July 2009)."Santander rebrands commercial banking units".Finance Markets.Retrieved23 March2013.
  20. ^Chris Salih (9 December 2009)."IFG Group to buy James Hay for £35m".Money Marketing.
  21. ^"Santander pays £1.65bn for 318 RBS branches".London: The Daily Telegraph. 4 August 2010.Retrieved4 August2010.
  22. ^"RBS sale of 316 branches to Santander collapses".BBC News.12 October 2012.Retrieved12 October2012.
  23. ^Patrick Collinson (26 February 2011)."Is Santander Britain's worst bank?".The Guardian.Retrieved16 November2012.
  24. ^"Santander brings call centres back to UK".BBC News. 8 July 2011.Retrieved17 December2011.
  25. ^Steve Slater (20 December 2012)."Santander UK to sell UK store cards portfolio".Reuters.Retrieved29 April2013.
  26. ^"SAV Credit completes acquisition of Santanders Retail Co-Brand Credit Card / Point-Of-Sale Finance Business".SAV Credit. 13 May 2013.Retrieved28 May2013.
  27. ^Weir, Keith (29 September 2014)."Santander UK picks Bostock as CEO to lead London float".Reuters.Retrieved15 February2015.
  28. ^Aguado, Jesus; White, Sarah (4 November 2014)."Spain's Santander does not expect UK unit IPO in 2015 - CEO".Reuters.Retrieved15 February2015.
  29. ^Slater, Steve (28 July 2015)."Santander UK finance chief quits as bank keeps IPO plans on ice".Reuters.Retrieved25 August2015.
  30. ^Simon Read (23 January 2019)."Santander to shut 140 branches".BBC News.
  31. ^Sweney, Mark (25 March 2021)."Santander to close 111 UK branches, affecting 5,000 jobs".The Guardian.
  32. ^"Santander International Expands Services in the Channel Islands and the Isle of Man".Jersey Finance.24 October 2017.Retrieved31 May2018.
  33. ^Greig Cameron (31 May 2013)."Santander chief plans more Scots branches".The Herald.Retrieved23 June2013.
  34. ^"18 Month Fixed Rate Bond".Santander UK. May 2013.Retrieved30 May2013.
  35. ^"Our members".Cheque and Credit Clearing Company. 2013.Retrieved23 March2013.
  36. ^"Subscribers".Lending Standards Board.Retrieved5 November2015.
  37. ^Santander launches current account with no fees or penalty chargesJacquie Bowser. Brand Republic. 20 November 2009
  38. ^Ian Pollock (10 January 2010)."Will Santander challenge the big banks?".BBC News.Retrieved10 December2011.
  39. ^"Santander sponsorship renewal boosts McLaren".Reuters.23 January 2014.Retrieved26 January2014.
  40. ^"Santander extends McLaren partnership".Formula One. 14 September 2009.Retrieved16 November2012.
  41. ^"Corporation Sponsorship".Santander. 2013.Retrieved26 January2014.
  42. ^"Rory McIlroy to sign a deal with Santander".Belfast Telegraph.22 September 2011.Retrieved22 March2013.
  43. ^Santander announces Ant & Dec as new brand ambassadors,3 June 2019
  44. ^"Santander to take over sponsorship of 'Boris bikes' scheme".BBC News.27 February 2015.Retrieved27 February2015.
  45. ^"Leicester's e-bike share opens to all city residents".Leicester City Council.14 April 2021.Retrieved14 April2021.
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