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Santander plans to grow Openbank, the digital deposit-gathering platform into a fully transactional online bank in the U.S.; Verizon deal provides the bank with a new pipeline of deposits

May 9, 2025 //  by Finnovate

While other European banks have largely retreated from the ultra-competitive U.S. retail market, Santander appears to be firmly staying put. Twenty years after entering the U.S., the company is doubling down on its commitment to invest in and expand its stateside operations. Much of its growth plan is pinned on Openbank, the digital deposit-gathering platform it rolled out in the U.S. in conjunction with a company-wide focus on being a “digital bank with branches.” Openbank, which has been available in parts of Europe for years, offers Santander a way to attract low-cost deposits nationwide to help fund the bank’s sizable auto loan book. Overseeing the evolution of Openbank into a fully transactional online bank is the top priority for Christiana Riley, who took over as CEO of Santander’s U.S. operations. Riley is also charged with unifying Santander’s previously disconnected U.S. business units to increase the company’s revenue and profitability. The years that her predecessors spent laying the groundwork mean that Santander can now grow quickly, Riley told. Early results are promising. Openbank, whose high-yield savings account attracts customers with a premium interest rate, has reeled in nearly $4 billion of deposits since its launch in late October, Riley said. That’s “well in excess” of what management had expected, she noted. The pace at which Santander grows may depend on how the U.S. economy fares in the coming months. If the Trump administration imposes global tariffs as planned, and a trade war ensues, the economy could fall into a recession, some economists have warned. Any headwinds the Spanish company faces “will be related to the U.S. economy,” said Arnaud Journois, an analyst at Morningstar DBRS who covers European banks. In addition, it will take time to see if Santander’s deposit-gathering strategy leads to cheaper funding for its auto loans, he said.  “I think they need a track record to see how it will unfold,” Journois said.  The company has taken a different pathway from its overseas peers, Journois said. At the company’s 2023 investor day, executives laid out plans for higher growth and profitability, largely by leveraging the firm’s global scale and business diversification. The U.S. market factored heavily into the overall strategy, with a focus on reducing funding.

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