Spain's banking sector reduces branches amid AI expansion

The Spanish banking sector is experiencing a significant shift as major institutions reduce their physical presence. Between June 2025 and the current month, the six largest banks—Santander, BBVA, Caixabank, Sabadell, Unicaja, and Bankinter—have closed 440 branches. The total number of bank branches in Spain has fallen to 9,984, down from over 13,200 in 2020.

This contraction occurs alongside a push for artificial intelligence integration, which aims to increase efficiency. While banks emphasize the importance of face-to-face service to differentiate themselves from neobanks, the trend toward automation continues. Meanwhile, the sector has reported substantial profits, reaching 20,164 million euros through June.

In the broader technology landscape, Spain has tripled its number of specialized AI companies. Businesses integrating these tools report saving up to five hours of work per week. However, the full impact of this productivity gain is limited by incomplete cloud infrastructure maturity, as many companies struggle to move data out of silos to effectively scale AI models.