The president of Banco Santander, Ana Botín, announced on Wednesday that the entity will invest more than 20,000 million euros in its digital and technological transformation in the next four years to improve the experience of its clients, increase their trust and connection and reduce costs. At the Investors Day held each year in London, Botín explained that technology is changing banking as we know it and that is why Santander is preparing to take advantage of its "strengths", such as talent and size, and be "the digital leaders of the financial sector in the next decade ".
The entity has also announced its strategic plan for the next three years, with which it intends, among other objectives, to increase its profitability and achieve a Progressive annual cost savings of 1,200 million euros, as well as raise the "pay out" or percentage of the profit destined to dividends up to 40-50%. It also expects to achieve a return on ordinary tangible capital (RoTE) between 13 and 15% in the medium term and improve its efficiency ratio to 43-45%, as well as maintain a solvency ratio CET1 "fully loaded" -with all Basel requirements- between 11 and 12%, reports Efe.
To carry out this strategy, the bank today announced a simpler management structure for Europe, South America and North America, as well as a steering committee with a greater business focus that will allow a better and faster execution throughout the Group. In addition, Santander has announced that it plans to launch Openbank, the 100% digital bank of the group, in ten new markets "in the medium term", until reaching two million customers. And within its digital offer, Santander has announced the launch of an open platform for financial services, with a focus on payments, a sector with expected revenue growth of around 9% per year. The platform will incorporate, among other initiatives, a service in the open international transfer market that will be called Pago FX. It also foresees the international expansion of the Brazilian subsidiary Getnet to turn it into a global payment platform for merchants, the Global Merchant Services, as well as the creation of a new global trade platform, Global Trade Services, to facilitate SMEs the leap to international Business.
To increase profitability, Santander will improve the allocation of capital by allocating capital to the most profitable businesses and maintaining "minimum thresholds of profitability for all its business segments." Santander expects to generate more than 40 basic points of organic capital each year to accompany the growth of the business and will provide flexibility to the policy of remuneration to shareholders.