- Santander’s Expansion Plans:
- Spanish banking group Santander intends to launch its digital banking subsidiary Openbank in the United States later this year.
- Openbank’s Offerings:
- Openbank, established in 1995, offers a range of digital financial services, including current accounts, lending, mortgages, and open deposits.
- Expansion Strategy:
- With €18 billion in deposits, Santander plans to debut Openbank in the US market in the second half of the year, alongside a launch in Mexico within the same timeframe.
- Previous Expansions:
- Openbank expanded beyond Spain to Germany, Portugal, and the Netherlands in 2019, and further into Latin America with a launch in Argentina in 2021.
- Technological Innovation:
- Santander highlights that Openbank’s US launch will be the first time it combines all core proprietary technology to deliver an innovative and secure cloud-based banking platform.
- Strategic Focus:
- The bank aims to accelerate its growth in the US by leveraging Openbank’s launch to attract deposits to support the expansion of its auto financing franchise.
- Leadership Appointment:
- Santander appointed Swati Bhatia, a former Goldman Sachs director, as the new head of retail banking and transformation, emphasizing her role in leading digital transformation initiatives for the group’s US subsidiary.
- Financial Insights:
- Santander’s auto business, alongside PagoNxt and other segments, accounted for a significant portion of its revenue and net fee income in the previous year, indicating the importance of diversification and growth in various sectors.
Santander to launch Openbank in the US this year
