Santander Set to Launch Openbank in US

Spanish banking giant Santander is gearing up to enter the competitive US financial market with the impending launch of its digital banking subsidiary, Openbank, later this year. This strategic move represents a significant milestone for Santander as it taps into its advanced technology and extensive range of digital financial services to penetrate the US market.

Established in 1995, Openbank has established itself as a leader in digital banking, offering a wide array of services including current accounts, lending, mortgages, and open deposits. With €18 billion in deposits, Openbank’s expansion into the US market is poised to challenge traditional banking models and reshape the customer experience.

Santander plans to roll out Openbank’s US debut concurrently with its launch in Mexico, signalling a concerted effort to expand into key markets across the Americas. This expansion follows Openbank’s successful ventures into Germany, Portugal, and the Netherlands in 2019, followed by its entry into Latin America with its launch in Argentina in 2021.

What distinguishes Openbank’s US launch is Santander’s focus on leveraging its proprietary technology to deliver an innovative and secure cloud-based banking platform. This approach underscores Santander’s commitment to combining technological innovation with a customer-centric approach to banking.

The bank’s ambitious entry into the US market is driven by a strategic vision to strengthen its auto financing franchise, capitalising on the vast potential of the US consumer market. With former Goldman Sachs director Swati Bhatia leading its retail banking and transformation efforts, Santander aims to spearhead digital transformation initiatives and capitalise on emerging opportunities in the US banking landscape.

According to Santander’s latest financial statements, its auto business, along with PagoNxt and its corporate and investment banking, wealth management, and insurance businesses, significantly contributed to revenue and net fee income last year. With Openbank’s impending launch in the US, Santander is poised to unlock new avenues of growth and innovation, solidifying its position as a global leader in digital banking.