Banco Santander announced a major restructuring of its European operations, revealing plans to merge its digital banking unit, Openbank, with its consumer lending arm, Santander Consumer Finance (SCF). The combined entity will operate under the Openbank brand, creating a unified digital consumer bank across the continent.
The integration process will begin in Germany, with other European markets scheduled to follow. This strategic move aims to simplify the group's business structure, enhance its product offerings, and provide a seamless digital experience for both individual customers and corporate partners.
Key Takeaways
- Banco Santander will merge Openbank and Santander Consumer Finance (SCF) into a single legal entity in Europe.
- The consolidated business will gradually adopt the Openbank brand, endorsed with "by Santander."
- Germany will be the first market to implement the integration, serving as a model for subsequent rollouts.
- The merger aims to create a unified digital platform offering a wider range of banking, lending, and investment products.
- The combined operations currently support approximately 16,000 new customers daily across Europe.
A Strategic Move to Unify Digital Banking
Banco Santander's decision to merge Openbank and Santander Consumer Finance is a key part of its strategy to build a leading digital consumer bank. Both entities are already part of Santander’s Digital Consumer Bank (DCB) global business, making this integration a logical step toward operational efficiency and business simplification.
By combining the two units, Santander aims to create a single, powerful platform that leverages Openbank's advanced technology and SCF's extensive expertise in consumer lending. The move is expected to improve the customer experience by providing a single access point for a comprehensive suite of financial products.
The new entity will operate under the Openbank brand, which Santander has positioned as its flagship for digital-first banking. To maintain brand recognition and trust, the name will be accompanied by the endorsement "by Santander," highlighting its connection to the global banking group.
Germany to Lead the European Integration
The rollout of this new consolidated structure will begin in Germany, one of the key markets for both Openbank and SCF. The German businesses of Openbank and Santander Consumer Bank will be the first to merge their operations and legal structures.
Following the integration in Germany, Santander plans to gradually introduce the rebranding and operational consolidation across its other European markets. The company has not yet released a detailed timeline for the expansion into other countries.
Background on the Merging Entities
Openbank: Santander's fully digital bank, known for its innovative technology and user-friendly design. It currently operates in Spain, Germany, Portugal, and the Netherlands, and has recently expanded into the United States and Mexico.
Santander Consumer Finance (SCF): A leader in European auto finance, managing a loan portfolio of over €140 billion. SCF operates in 18 countries and has established strong partnerships with auto manufacturers, dealers, and major retailers.
The initial phase involves merging the Spanish-headquartered legal entities of Openbank and Santander Consumer Finance, a process that is subject to regulatory approvals. The simultaneous consolidation in Germany will serve as a practical blueprint for the wider European strategy.
Enhanced Product Offerings for Customers and Partners
A primary goal of the merger is to provide a broader range of services to a unified customer base. Currently, Openbank and SCF collectively serve around 16,000 new customers daily with financing for cars, electronics, home goods, and personal loans.
The integrated platform will allow customers to access an expanded suite of products, including:
- Standard banking and payment solutions.
- Consumer lending for various needs.
- An automated investment service known as Robo Advisor.
- A broker platform with AI-driven tools for analyzing European and US stocks.
- A recently launched crypto trading service in select markets.
Combined Market Power
Santander Consumer Finance is the largest auto finance provider in Europe by loan volume, with successful operations in 18 countries. Openbank has achieved one of the highest net promoter scores (NPS) in its primary market, reflecting strong customer satisfaction with its digital platform.
This move is also designed to strengthen relationships with corporate partners. By creating a single, more efficient operating structure, Santander aims to offer more competitive financing solutions to its partners, which include major global brands like Apple, Amazon, and Vodafone.
Leadership Perspective on the Future
The leadership at Santander views this integration as a transformative step toward creating a more agile and competitive digital bank. The merger is expected to combine the innovative culture of a digital-first bank with the stability and scale of a global financial institution.
Nitin Prabhu, the global head of Santander’s Digital Consumer Bank, commented on the strategic importance of the decision.
"Bringing together Openbank and Santander Consumer Finance is an important step in our transformation to build the best open financial services platform. This combination will strengthen our position in key markets like Germany and across Europe, enabling us to offer customers a broader range of products and a seamless digital and in-branch experience."
Prabhu emphasized the synergies between the two businesses. "By leveraging Openbank’s advanced technology and Santander’s consumer finance expertise, we’re creating a more efficient and innovative digital-first bank ready for the future."
The consolidation is expected to streamline operations, reduce complexities, and ultimately drive new business growth by creating a more compelling value proposition for millions of consumers across Europe.
