FOLLOWING a strategic review of its retail network, Santander, one of the world's largest banks, has decided to consolidate its retail operations into its proprietary branches.

This decision means that Santander has served notice on 139 agencies – retail outlets not owned by Santander – which provided limited banking services under license and Santander's branding.

The Crediton agency, operated from the offices of Bedford and Co, accountancy practice, at 128 High Street, Crediton, is one of those set to close.

The closure, which is expected to take place in June, follows that of the town's branch of HSBC bank, which happened on January 24.

Similarly, as prior to the closure of the HSBC branch, customers served by the Crediton Santander agency have, this week, received letters informing them of the pending closure and advising of the nearest branch to stay open, which will, also similarly, be in Exeter.

Santander said that the strategic review of operations identified a number of financial challenges in maintaining the third party network – including the investment needed to bring them up to the level required of a full service branch in the future.

It said Santander will be working with each of the agency owners to ensure a smooth exit from the agreement.

Steve Pateman – Head of UK Banking at Santander said: "Santander has come a long way from when it was a collection of three building societies. With a simplified and enhanced product range, we are offering our customers great value every day and with enhancements in mobile banking, internet capability and the improvements we have made to our proprietary branches, we have a distribution capability that allows our customers to bank with us, in the way they want, when they want.

"Part of enabling customers to choose how they deal with us, is making sure that all of our retail branches offer full banking.

"Consolidating our operations, following this announcement, is a vital next step for Santander, allowing us to concentrate on further enhancements and investment in, our proprietary branch network, including branch openings and refurbishments."

Sarah Davies, Head of Business Partner Communications at Santander, added: "Smaller banks and building societies, especially those with a regional heartland, traditionally looked to third party 'agents' as a way to affordably expand their presence in the UK.

"These agents would typically have had a primary business already established (for example an estate agency or insurance broker) and would have provided basic banking and saving products from the bank or building society under license."

Andy Bedford, director of Bedford and Co, Crediton, confirmed that "regrettably" some jobs may be at risk as a result of closure of the agency.

Mr Bedford added that Bedford and Co had operated the Santander agency for the past five years and for the previous 15 years, before it was acquired by Santander, the Bradford and Bingley building society agency.

He explained that prior to that there has been an agency in the town for a total of 40 years.

Mr Bedford added: "The loss of the agency will have no effect at all on the work of the accountancy firm, Bedford and Co.

"We will continue to serve our clients with business and taxation advice as normal."

Comments received from Crediton agency Santander customers who have been in touch with the "Courier" included "disappointment" at the pending closure and questions about whether they would continue to use the bank with no local branch or agency, another commenting "It is a shame as the staff were always welcoming and provided a very good service."

• Will the closure of the Crediton agency of Santander affect you? Do you fear branches of remaining banks will close in the town? Share your views with fellow readers by emailing: [email protected]">[email protected] .