The network of bank branches in Spain continues to shrink and falls below 19,000 in March

MADRID, 24 Jul. (EUROPA PRESS) -

The number of bank branches in Spain has continued to decline in the first quarter, reaching below 19,000 branches at the end of March, according to data collected by the Bank of Spain.

Specifically, the network of bank branches in the country ended March at 18,556 branches, a figure that had not been recorded since 1976, shortly before the beginning of the historical series on the evolution of branches in Spain in 1975.

This means that the number of branches has been cut by 548 between the end of December 2021 and the end of March this year, 2.87% less, although if compared to the situation last year, when the network was made up of 21,901, the number of branches has been reduced by 3,149 offices, 14.5% in relative terms.

With respect to the historical maximum, of 46,118 branches at the end of September 2008, the decrease is 59.8%.

This cut in branches is the consequence of several factors, among them, the bank's search to gain efficiency by reducing costs, which has led several of the large Spanish entities to apply adjustment processes, particularly in the last two years, as is the case of Santander, BBVA, CaixaBank or Sabadell.

As an explanation, the sector has pointed to the persistent environment of low or negative interest rates - a situation that would now begin to reverse itself, with the rate increase of 50 basic points approved by the European Central Bank (ECB) last Thursday - has pressured its margins, reducing its profitability.

It has also pointed to the entry of new competitors, especially bigtechs and fintechs, and the growing preference of customers for digital channels as reasons for adjustments.

In this sense, the sector has undergone a digitization process in recent years, a trend that has accelerated since the Covid-19 pandemic, when confinements made personal attention in offices difficult.

However, these adjustments have generated some tensions. In January, retiree Carlos San Juan launched a campaign to collect signatures to ask for better treatment at bank branches, which would lead to updating the protocol of measures to improve financial inclusion in rural areas to include the needs of certain groups, such as people with disabilities or the elderly.

The closure of offices has occurred in all the autonomous communities, although to a greater degree in the Balearic Islands (-19.9%), Murcia (-19.7%), Catalonia (-19.4%), Madrid (-18, 5%) and Castilla y León (-18.3%), if the data at the end of March is compared with that of the same period in 2021.

Where the network of bank branches is cut least is Navarra (-5.9%), Castilla-La Mancha (-7.3%) and Aragón (-7.9%).