Openbank launch aims to boost Santander’s US retail presence

Santander’s digital expansion into the US is part of its global strategy, with plans to increase its presence in other countries like Mexico.
Santander’s Openbank launches in Mexico, offering a digital-first approach to banking.

Spain‘s Santander has launched its digital bank, Openbank, in the United States, aiming to expand its retail presence and fund up to $30 billion in auto loans. As one of the few European banks with a United States retail foothold, Santander hopes this move will help it compete more effectively in the market.

Santander‘s US operations already hold over $45 billion in retail deposits and $60 billion in auto-related loans. The new digital bank aims to reduce funding costs by shifting away from more expensive wholesale funding. Openbank is offering a 5.25% yield on its savings accounts to attract US customers.

Openbank‘s launch is part of Santander’s broader global strategy to become a digital bank with branches, aiming to increase market share in a competitive US banking landscape. The bank has no immediate plans to re-enter the mortgage lending market, focusing instead on its digital offering.

Santander’s CEO for the US, Tim Wennes, emphasised that while hiring for Openbank will be limited, the bank will evaluate partnership opportunities to expand the platform. The digital shift comes as Santander seeks to boost returns from its US operations.