Santander has the opportunity to create further synergies, providing the Santander Auto business with a growing and cost-effective source of funding to reducing its loan to deposit ratio.
The launch marks a major milestone in the bank’s expansion into the American market as it allows Santander to serve US customers nationwide for the first time - complementing its growing Auto, Commercial, CIB and Wealth franchises.
Through Openbank, Santander will initially offer customers a high yield savings account with further products to follow.
By bringing Openbank to the US, the bank aims to further strengthen its position in the largest market in the world - increasing customer engagement and creating further synergies between its retail and leading auto finance business.
A major milestone in Santander’s US growth
Santander’s entry into the US retail banking market began in 2006 when it acquired a 25% stake in a regional bank primarily serving the northeastern part of the country. Three years later it completed the full acquisition, gaining its first foothold in the country’s retail banking sector.
The launch of Openbank is an important milestone in transforming the business from a Northeast regional bank to a digital banking platform that will allow Santander to provide customers across the country with a best-in-class, simple and convenient customer experience while also generating additional low-cost deposits to fuel the leading auto lending operation.
Synergies with Santander's scale auto franchise
Since acquiring a subprime auto lender, in 2014, Santander has grown the US Auto business into one of the leading, at-scale lenders in the country. Today, Santander is truly a full-spectrum lender, working with approximately 14,000 dealers nationwide and servicing a $65 billion loan and lease portfolio that is 42% funded by bank deposits, as of October 2024.
In 2022 Santander acquired the minority interests in its auto business, fully integrating the business into the Santander US entity with a closer connection to the existing retail franchise. This allowed the auto business to reduce its reliance on wholesale funding, helping it compete across a full spectrum of auto customer.
With the launch of Openbank in the US, Santander now has the opportunity to create further synergies, providing the Santander Auto business with a growing and cost-effective source of funding to reducing its loan to deposit ratio.
Digital Transformation: A Key Driver of Growth
The launch of Openbank in the US is just one part of Santander’s US and the group’s transformation strategy globally. Openbank is one example of how customers have benefited from this investment and has already been a success in Europe - where it operates in Spain, Germany, the Netherlands, and Portugal - attracting millions of customers with its user-friendly platform and innovative products.