Santander is set to launch a full-service U.S. digital bank by 2025, led by its European digital arm, Openbank. Executive Chair Ana Botín is confident the move will drive growth, expanding Santander’s offerings from savings accounts to auto loans in a key market.
Spanish banking giant Santander has set its sights on launching a full-service digital bank in the United States by the end of 2025, according to its Executive Chair, Ana Botín. This strategic move marks a significant expansion in a market where Santander has maintained a retail presence, despite the exit of European rivals such as BBVA and BNP Paribas.
Speaking at the Institute of International Finance conference in Washington, Botín expressed confidence in Santander’s decision to strengthen its U.S. operations, despite advice to divest from the region.
“I was advised by many people, you should sell the bank in the U.S., it’s never going to make it. And I didn’t,” said Botin.
Santander’s digital banking arm, Openbank, already Europe’s largest digital bank with over €18.5 billion in deposits, is spearheading the initiative. The U.S. version of Openbank, launched in October, initially offers high-yield savings accounts but is set to broaden its product range significantly.
By 2025, the bank aims to offer a comprehensive suite of services similar to its European operations, from savings products to auto loans. Santander is already the fifth-largest auto lender in the U.S., and the digital expansion is expected to help fund up to $30 billion in loans for vehicle purchases.
The U.S. is a crucial market for Santander, with 409 branches concentrated in the Northeast, and the digital push is seen as pivotal to the bank’s future growth strategy. Botín noted that Openbank would make banking “simple and fast with a competitive rate,” leveraging Santander’s reputation, which spans 168 million customers globally.
As the bank integrates more services into its digital offerings, it will likely benefit from increasing consumer demand and a softening U.S. economic landscape, setting the stage for substantial growth in the coming years.