The branch network of state banks is shrinking across Alicante as digitization accelerates and profitability remains under pressure. The number of bank offices has fallen to multiyear lows, with four major Spanish banks accounting for about 65% of all branches in the region.
Data from the Bank of Spain tracing the evolution of the credit institution network in Alicante clearly shows a radical shift in the sector’s structure. By the end of last September, only 600 branches remained in operation in the province, following the closure of 92 branches in the previous year. It should be noted that many of these closures were linked to the CaixaBank and Bankia merger in the final quarter of the previous year. In contrast, the pace of new closures slowed through 2022 as the year progressed.
Open branches now represent only a third of what existed in mid-2007, when savings banks expanded to as many as 1,770 offices. Since then, the crisis and various bank mergers have driven a steady decline, with mergers shaping much of the consolidation.
But the network is not the only element to have changed. The restructuring brought a notable drop in the number of operating establishments and a concentration of supply among fewer players. In 2007 there were 53 entities with branches in the province; today only 24 remain, and very few operators maintain more than ten offices.
Despite some adjustments, Sabadell once again holds the position of the bank with the most branches in the province, totaling 139. This leadership had traditionally belonged to CAM before the Bankia- CaixaBank integration. After the subsequent closures, the new CaixaBank ranks second with 111 branches, compared with 185 listed by the Bank of Spain a year earlier. BBVA shows 76 offices (six fewer than last year) and Santander has 58 (one fewer than September 2021).
Overall, the four major Spanish banks now concentrate about 65% of the network, a gain of roughly 20 percentage points since 2007. Including Cajamar’s 71 branches (covering CaixaAltéa, Caixa Petrer and Caixa Callosa), the top five banks control about 75% of all branches, up from 50% in 2007.
assessing the shift
The deputy director of the Valencian Institute for Economic Research, Joaquin Maudo, describes this network adjustment as necessary due to overcapacity in the system. The concentration in Spain still exceeds the European average, but Maudo notes that this does not automatically mean less competition since customers can access services remotely without visiting a branch.
Maudo also argues that the National Markets and Competition Commission should ensure there is sufficient diversity in the network. He believes the measures put in place by banks to prevent crises are reliable, but they must address financial exclusion in smaller municipalities that Ivie identified in its reports.
The pressing question now is whether the adjustments will continue. Some bank leaders, such as Sabadell’s César González-Bueno, suggest 2023 may not be a year of drastic cutbacks, but that doesn’t rule out further branch reductions. Maudo sees room for continued consolidation.
Labor unions warn that ongoing shutdowns could worsen access issues for vulnerable groups, including the elderly, who already protest the changes as access to financial services dwindles in some communities.
service centers
Regardless of the shrinking footprint, a shift in how services are delivered is clear. Banks favor larger, full-service branches that focus on advisory roles for savings products and credit management, while routine transactions move to digital channels or ATMs. CaixaBank’s strategy mirrors this approach. Santander has pushed a model of business cafés, and Sabadell has limited its so-called mega-offices to one address per region, with some branches advocating further reform to fit the evolving landscape. In Alicante, there are examples of consolidations, including one branch closing and another restructuring to better meet current needs.