Spain’s Santander has launched its digital bank, Openbank, in the United States, aiming to fund over $30 billion in auto lending assets and expand its retail business.
The move strengthens Santander’s presence in the U.S. market, where it stands out as one of the few European banks maintaining a retail footprint after competitors BBVA and BNP Paribas exited.
Santander currently holds over $45 billion in retail deposits across its 409 U.S. branches and manages $60 billion in auto lending assets. The bank plans to shift auto assets from wholesale funding to direct funding, which is expected to lower costs, though the exact savings have not been disclosed.
The launch of Openbank is part of Santander’s global strategy to grow as a digital bank with physical branches. To attract U.S. depositors, Santander is offering a competitive 5.25% yield on its savings accounts, surpassing the rates of major competitors like Goldman Sachs’ Marcus and CIT Bank.
Santander’s U.S. CEO Tim Wennes indicated that the bank would explore partnerships to grow the digital platform. He also mentioned that the bank is comfortable with its current resources in its corporate investment division following a recent hiring spree from the defunct Credit Suisse.