Santander streamlines its retail and commercial operations to fit its strategic plan
Santander Bank, one of the world's leading financial institutions, has unveiled a new business structure aimed at enhancing operational efficiency, simplifying decision-making, and accelerating digital transformation. The reorganization, known as the "One Santander" structure, was announced on September 18, 2023, and will take effect from January 2024.
The new structure groups Santander's global operations into three main business units: Retail and Commercial Banking, Corporate and Investment Banking, and Asset Management and Insurance. This reorganization aligns closely with the strategic goals presented at Santander’s Investor Day in February 2023, which emphasized geographic diversification, business simplification, and digital innovation to drive growth and profitability.
The restructuring supports Santander’s strategy to strengthen its leading retail banking franchises across its 10 core markets with clear local autonomy while benefiting from global scale. By consolidating similar business lines globally under unified leadership, Santander aims to reduce overlaps and streamline costs, consistent with the announced efficiency targets.
The new units are designed to accelerate digital product development and innovation, enabling the bank to better compete with fintechs and respond to evolving customer needs. The bank's digital transformation efforts are further underscored by the creation of a new business area, the Digital Consumer Bank, which will handle all consumer finance activities worldwide.
Santander's commitment to sustainable finance is also integrated within its business framework as outlined in its evolving corporate policies. The restructuring reflects the strategic priorities communicated at the February 2023 Investor Day, aiming for profitable growth, increased returns, enhanced customer-centricity, and leadership in sustainability across Santander’s global footprint.
Santander's executive chair, Ana Botín, stated that the changes align the bank's operating model with its strategy and will allow for faster progress towards all targets set out at Investor Day this year. The bank is on track to meet its 2023 targets, including double-digit revenue growth, RoTE above 15%, cost-to-income ratio of 44-45%, fully-loaded CET1 above 12%, and cost of risk below 1.2%.
As part of the reorganization, the bank is consolidating its activities across all markets under five global areas: Payments, Corporate & Investment Banking, Wealth Management & Insurance, Retail & Commercial, and Digital Consumer Bank. Key leaders in these areas include Javier San Félix (PagoNxt and Global Cards), Victor Matarranz (Wealth Management & Insurance), Daniel Barriuso (Retail & Commercial), José M. Linares (Corporate & Investment Banking), and José Luis de Mora (Digital Consumer Bank).
The bank will publish information adapted to the new segments ahead of the 2023 full-year results announcement, which will take place on 31 January 2024. Santander aims to add 40 million customers by 2025, increase return on tangible equity to 15-17%, and achieve double-digit average annual growth in tangible net asset value per share plus dividend per share through the cycle.
Santander Bank's new organizational structure, the "One Santander" model, segregates its global operations into three main business units: Retail and Commercial Banking, Corporate and Investment Banking, and Asset Management and Insurance. This restructuring sets the stage for digital innovation by creating a new business area, the Digital Consumer Bank, which will handle all consumer finance activities worldwide.
By streamlining costs and reducing overlaps through consolidating similar business lines globally, Santander aims to accelerate digital product development and innovation, positioning itself more effectively against fintechs while catering to evolving customer needs, therefore aligning with the bank's commitment to lifestyle-focused technology and digital banking.
