Spanish banking giant Banco Santander is expanding its U.S. operations through a partnership with Verizon, aiming to access the telecom major's extensive customer base, a source familiar with the matter revealed on Tuesday.
The collaboration enables Verizon customers to receive bill credits by opening high-yield savings accounts with Santander's new digital banking platform, as per the source.
Notably, Santander holds one of the largest retail presences in the United States and plans to establish its proprietary technology platform for consumer banking, inclusive of digital-only banking and consumer finance.
In October, the bank launched its high-yield savings accounts in the U.S., intending to finance up to $30 billion in vehicle loans and enhance its retail operations.
Santander is among the few European banks with retail operations in the U.S. market, post the departure of competitors BBVA and BNP Paribas, boasting 409 branches predominantly across nine Northeastern states.
In an interview with the Wall Street Journal, Ana Botin, Santander's executive chair, disclosed the bank's ambition to evolve into a comprehensive digital bank in the U.S., indicating a readiness for additional partnerships.
Last October, Botin expressed her anticipation of establishing a full-service digital bank in the U.S., a strategic move given Santander's underperforming U.S. business.
Recently, the Spanish bank unveiled plans to invest over $2 billion in various projects in Mexico over the next three years.