Santander has officially launched Openbank in the United States, marking a significant move to bolster its U.S. growth and fund its auto lending business. The digital platform aims to attract deposits that will support $30 billion in car purchase loans. With high-yield savings accounts leading the way, Santander plans to roll out additional products in the coming year.
High-Yield Savings Leads the Charge
You heard that right: Santander is offering an initial 5.25% annual percentage yield on its Openbank savings account.
- This rate outpaces competitors like Goldman Sachs’ Marcus at 4.1%.
- It also beats CIT Bank’s platinum savings account, which stands at 4.7%.
- The goal is to provide U.S. customers with a top-tier savings option that’s both fast and simple.
“Our aim is to offer the best high-yield savings account through a digital-first service,” said Petri Nikkilä, global CEO of Openbank.
Expanding Product Offerings in 2024
But wait, there’s more. Santander isn’t stopping at savings accounts.
Next year, the bank plans to introduce:
- Checking accounts
- Debit cards
- Certificates of deposit
Lending products might also be on the horizon within the next 18 months, according to Tim Wennes, Santander’s U.S. CEO.
“We’re looking to augment our services and provide more options for our customers,” Wennes told American Banker.
Boosting Auto Lending with Deposits
The launch isn’t just about new products; it’s a strategic move to fund auto loans.
Currently, Santander has over $30 billion in auto assets that are wholesale-funded. By attracting deposits through Openbank, the bank aims to fund these loans directly.
“This is a significant milestone in our transformation,” said Ana Botín, Santander’s executive chair. “The U.S. is a key market where we’ve been expanding our business.”
No Branch Closures Planned
If you’re worried about your local Santander branch closing, breathe easy.
Santander has no intentions of shutting down any existing U.S. branches due to Openbank’s launch. “In general, this is an augmentation,” Wennes assured.
The digital platform complements the physical branches, offering customers more ways to engage with the bank.
