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Santander merges Openbank with consumer finance unit in Europe

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  Published in Business and Finance on Wednesday, October 15th 2025 at 21:46 GMT by Finextra
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Santander Unifies Openbank with Its European Consumer‑Finance Arm: A Strategic Leap Toward Integrated Digital Banking

Santander has officially merged its Spanish digital bank, Openbank, with its consumer‑finance division that operates across Europe. The consolidation, announced in a press release on October 6 2023, is positioned as a strategic initiative to streamline product delivery, deepen cross‑sell capabilities, and leverage technology across a unified platform. The move follows Openbank’s acquisition by Santander in 2019 and aims to harness the momentum of the open‑banking wave, while giving the Spanish lender a more coherent digital footprint in the region.

Why Merge Openbank with Consumer Finance?

The digital banking sector is witnessing a surge in competition from fintech firms and challenger banks that offer highly tailored, tech‑driven services. Santander’s decision to merge Openbank with its consumer‑finance arm is driven by several interrelated objectives:

1. Unified Customer Experience
   Currently, Openbank operates as a standalone digital bank, offering savings, current accounts, and investment products. Separately, Santander’s consumer‑finance arm manages a portfolio of credit cards, personal loans, and retail financing across Spain, the UK, Italy, and other markets. Merging these entities enables customers to receive a seamless suite of products—checking accounts, savings, loans, and credit cards—within a single digital ecosystem. This reduces friction and improves customer satisfaction.

2. Cross‑Selling Synergies
   Santander’s consumer‑finance division has a robust portfolio of credit products that can be cross‑sold to Openbank’s existing base of digitally savvy customers. Conversely, Openbank’s data‑driven insights into customer behaviour can help the finance unit refine underwriting models and offer more personalised credit products.

3. Cost Efficiency & Scale
   Consolidating back‑office functions, risk management, and compliance processes reduces duplicated effort and leads to significant cost savings. The combined entity can negotiate better terms with technology providers, third‑party vendors, and payment networks, driving down operating expenses.

4. Strengthening Open Banking Position
   Openbank has been at the forefront of Spain’s open‑banking revolution, pioneering APIs that allow third‑party providers to access banking data. By bringing consumer finance under the same roof, Santander can roll out open‑banking services for loans and credit products, fostering innovation and partnerships with fintech developers.

How the Merger Will Be Executed

Santander has outlined a phased integration plan:

• Phase 1 – Brand and Product Alignment (Q3 2023)
  The two entities will adopt a unified brand identity—“Santander Openbank Consumer Finance.” Product suites will be harmonised, with credit cards, personal loans, and retail financing integrated into Openbank’s app and web portals.

• Phase 2 – Technical Integration (Q4 2023 – Q2 2024)
  Openbank’s existing APIs will be expanded to include credit‑product endpoints. Back‑office platforms such as risk assessment, fraud detection, and customer relationship management (CRM) will be merged into a single system.

• Phase 3 – Regulatory and Market Expansion (Q3 2024 onward)
  The combined entity will seek regulatory approvals across the European Union, ensuring compliance with the Payment Services Directive 2 (PSD2), the General Data Protection Regulation (GDPR), and local consumer‑finance regulations in the UK, Italy, and other jurisdictions.

The integration is expected to be completed by the end of 2024, with full operational convergence achieved in 2025.

What This Means for Customers

Customers of Openbank will see immediate changes in their digital interface. Account holders will now have access to a broader range of financial products directly through the Openbank app, including:

• Personal Loans – tailored for home improvement, education, or vehicle purchases.
• Credit Cards – with dynamic reward structures tied to spending patterns.
• Retail Financing – flexible payment options for everyday purchases.

For existing consumer‑finance customers, the shift means a smoother application process for digital products, better integration of spending data, and potentially faster approval times thanks to Openbank’s advanced analytics capabilities.

Santander emphasised that the merger will not affect the core banking services that Openbank customers rely on, such as free electronic transfers, overdraft protection, and real‑time payments. “Our priority is to deliver a frictionless, fully integrated experience,” a senior Santander spokesperson told Finextra. “Customers will enjoy the benefits of our digital expertise combined with the breadth of our consumer‑finance portfolio.”

Industry Reactions

Financial analysts see the merger as a logical step for a bank that has long been a digital pioneer. “Santander is capitalising on the convergence of banking and fintech,” said Maria Gómez, senior analyst at Iberia Bankwatch. “By aligning Openbank’s technology stack with its consumer‑finance products, Santander is positioning itself as a one‑stop digital bank for European consumers.”

Meanwhile, fintech ecosystems are watching closely. Openbank’s open‑banking APIs have attracted a growing ecosystem of third‑party developers. The merger is expected to unlock new collaboration opportunities. “This integration provides a powerful platform for fintechs to offer credit‑related services under a trusted brand,” commented Luca Bianchi, head of product at FinTech Hub Italy.

Looking Ahead

Santander’s integration of Openbank and its consumer‑finance unit reflects a broader trend in banking: the move towards a unified digital customer experience that blends banking, payments, and credit services. By consolidating these functions, Santander is aiming to outpace competitors that are increasingly offering “one‑app” solutions.

The real test will be execution. Success hinges on maintaining a high‑quality customer experience during the transition, ensuring regulatory compliance across multiple jurisdictions, and effectively combining disparate technology stacks. If Santander manages these challenges, the merger could set a new standard for digital banking integration in Europe—an achievement that may influence the strategies of other major banks in the coming years.

In sum, Santander’s merger of Openbank with its consumer‑finance arm is a bold, forward‑thinking strategy designed to harness digital innovation, drive cross‑sell synergies, and deliver a seamless banking experience to millions of customers across Europe. The outcome of this integration will likely be a key indicator of how traditional banks can evolve in an increasingly digital financial landscape.