Madrid, October 15, 2025 — Spanish banking giant Banco Santander (SAN.MC) has announced a major restructuring move, integrating its digital lender Openbank and Santander Consumer Finance (SCF) into a single unified entity. The consolidation aims to strengthen Santander’s position in European consumer banking while enhancing efficiency through a unified digital-first model.

According to the statement released Wednesday, the new structure will gradually bring together Santander’s European consumer finance operations under the Openbank brand, with Germany being the first market to undergo integration. Other European markets will follow in a phased rollout over the coming months.

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Strategic Integration to Enhance Digital Capabilities

This integration marks another significant step in Santander’s digital transformation journey. By combining Openbank’s cutting-edge digital platform with Santander Consumer Finance’s extensive consumer lending network, the bank aims to deliver a seamless customer experience and greater operational efficiency across Europe.

Openbank, already recognized as one of Europe’s leading digital banks, operates entirely online, offering retail banking, investment, and savings services. Meanwhile, Santander Consumer Finance has been a cornerstone of the bank’s consumer lending and auto finance business across the continent.

The merger will allow Santander to consolidate technology infrastructure, streamline processes, and align products across its European operations, reflecting the bank’s ongoing strategy to simplify its organizational structure and reduce operational costs.

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Germany to Lead the Integration Effort

Santander confirmed that Germany will be the first country to initiate the integration process. The choice reflects Germany’s strong consumer finance market and its importance within Santander’s European footprint.

By launching in Germany first, Santander aims to test and refine the integration model, ensuring a smooth transition before expanding to other key markets such as Spain, Portugal, and the Netherlands.

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A Broader Strategic Overhaul

The merger of Openbank and Santander Consumer Finance follows Santander’s broader 2023 restructuring, when the bank reorganized its global business lines into five core divisions — Retail, Consumer, Payments, Wealth Management, and Corporate & Investment Banking.

This reorganization was designed to boost shareholder value, drive digital innovation, and reduce costs through shared platforms and centralized management systems.

While Santander did not provide an immediate estimate for cost savings from the current integration, analysts expect the move to contribute to long-term efficiency gains and improved profitability across its European network.

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Strengthening Santander’s Digital Banking Leadership

By consolidating Openbank and SCF, Santander reinforces its ambition to become a leader in digital and consumer finance across Europe. The integration will enable the bank to:

• Leverage Openbank’s digital platform for scalability and innovation
• Unify product offerings across retail and consumer lending channels
• Improve customer experience through cross-platform data integration
• Enhance efficiency and reduce redundancies in back-office operations

The initiative also underscores Santander’s commitment to building a pan-European digital bank, capable of competing with both traditional banks and fintech disruptors in the rapidly evolving financial landscape.

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Market Reaction and Outlook

While Santander did not release specific financial projections tied to the merger, investors responded positively to the announcement, viewing it as a strategic alignment with the future of European digital banking.

Industry observers suggest that the unified entity could become one of Europe’s largest and most technologically advanced consumer banks, leveraging Santander’s scale and Openbank’s innovation-driven culture.