Santander's Digital Banking Expansion in the U.S.

By Nupur Anand and Pete Schroeder
Location: Washington

Spanish lender Santander (BME:SAN) plans to establish a full-service digital bank in the United States by the end of 2025, according to executive chair Ana Botin during comments made at the Institute of International Finance conference in Washington.

Santander officially launched its digital bank on Monday, providing high-yield savings accounts in the U.S. This initiative aims to support over $30 billion of auto lending assets and expand its retail presence. The bank intends to introduce additional products in the future.

A digital bank consolidates all services into a single website and app. The launch of Openbank, Europe’s largest digital bank with over €18.5 billion in deposits, aligns with Santander's global retail expansion strategy.

Botin anticipates increased investment following the upcoming U.S. elections on November 5. She noted that while corporations are cautious, many are awaiting election outcomes before moving forward.

Santander, recognized as the fifth-largest auto lender in the U.S., is optimistic about a resurgence in consumer demand. Botin also shared insights on the U.S. economy, remarking, "the good news is that it seems to be a soft landing…maybe less soft than we thought last year, but there is some kind of a slow recovery."

"If you asked any of us two years ago, we are in a better place."