Santander Takes on Fintechs with a Digital + Branch Strategy

Hybrid Banking at a Glance:

• The bank showcases how legacy institutions can blend human-to-human connections at the branch with digital banking convenience
• Santander’s Openbank Initiative topped $2 billion in deposits in its first three months of operation in the U.S. 
• From high-yield savings accounts to value-add partnerships, Santander is finding new ways to attract and retain customers and expand its reach

As financial institutions look for new ways to attract and retain customers, one bank appears to have cracked the code. Santander, a global bank headquartered in Spain, brought its Openbank digital banking platform to the U.S. in October 2024. In announcing the bank’s nationwide expansion into the consumer market, Openbank Global CEO Petri Nikkilä stressed that their goal was to “offer U.S. customers the best high-yield savings account through a digital-first service, which is fast, simple with a competitive rate, and a superior customer experience accessible anytime, anywhere.” Within three months, the banking platform topped $2 billion in deposits. 

Santander’s Openbank initiative reveals how legacy banks are embracing hybrid models – digital banking augmented by an expanding branch network. Like other established banks, Santander has responded to Fintech disruption by strategically integrating digital ease into its overall approach. This comes as consumer expectations are shifting. Customers are increasingly looking for financial institutions with intuitive onboarding, competitive rates, and mobile-first experiences – along with branches nearby when they need personalized support and financial guidance. The hybrid approach is expected to add value rather than replace traditional bank branches.

Santander is “uniquely positioned to provide U.S. consumers with the digital banking experience of a Fintech and the strength and stability of a leading global bank,” says Swati Bhatia, Santander Bank’s Head of Retail Banking & Transformation. Openbank’s signature offering is a high-yield savings account (HYSA) at some of the best rates in the country. HYSAs are a powerful tool for attracting and retaining deposits, which gives banks a stable source of funding to support lending, capital expansion, and portfolio growth. For consumers, HYSAs offer high returns while maintaining liquidity. And with banks, unlike Fintechs, consumers benefit from FDIC protections.

High-yield savings accounts serve as a powerful “front door,” attracting new customers who might not otherwise switch banks, but often compare rates so their money works harder for them. For banks, HYSAs create a competitive advantage by bringing in stable deposits and enabling deeper relationships over time. Openbank has announced plans to expand beyond savings accounts with checking accounts, payment features, and certificates of deposit, enabling Santander to cross-sell higher-margin products as customer relationships mature. These capabilities position Openbank as a strong challenger to digital-only providers that offer credit, investing, and Fintech add-ons.

As Santander expands across the United States, the bank has also embarked on a partnership with Verizon. The Verizon + Openbank initiative offers consumers an opportunity to grow their money while earning up to $180 per year in credit on their mobile bill. Partnerships matter – as banks that align with mobile providers, retailers, and Fintech can reach new audiences cost-effectively and at scale. Openbank’s partnership with a recognizable brand to broaden its market reach also reveals how financial services are becoming part of the larger consumer ecosystem. This is just another way that traditional banks can compete for attention and relevance in a crowded marketplace.

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