Santander has expanded its digital banking offerings in Germany through the launch of German International Bank Account Numbers (IBANs).
By offering its customers a German IBAN, Openbank users will now be able to receive salaries, set up direct debits for bills, arrange capital gains exemption orders, and other actions.
This development means that Santander will no longer operate in Germany under the European passport framework and instead as a German branch. Due to this change, Openbank will be subject to regulatory oversight by BaFin, the country’s financial regulator, as well as the Spanish banking supervision by Banco de España.
Petri Nikkila, Global CEO of Openbank, commented: “After four years operating in the German market, Openbank is expanding its presence in a key region for growth in Europe. We believe customers value the potential of a digital banking model such as Openbank that offers products with competitive returns and the security and backing of a financial group like Santander.”
In addition to the introduction of German IBANs, the bank is offering personal loans for the first time in the country. Santander has revealed that it will offer loans of up to €24,000 with terms of up to 60 months.
The user experience of the mobile app has also been enhanced, with a new ‘more intuitive’ interface that enables users to open accounts in a few minutes. Additionally, customers will now be able to make instant and free transfers within the eurozone.
Santander has used Openbank to spearhead its global expansion. Last year, the bank launched its digital banking asset in the US and Mexico. Stating its reasons for the US launch, Santander said it will accelerate its profitable growth strategy and look to generate deposits to fund its leading auto franchise.
At the time of the US launch, Ana Botín, Executive Chairman of Banco Santander, commented: “The launch of Openbank in the US marks a significant milestone in our group’s transformation.
“Openbank reflects our belief that to be the best for both our customers and shareholders, deploying our own core and front-end cloud-based technology globally is essential and will deliver sustainable competitive advantage.
“The US is a key market for us, where we have been expanding our business over the past years. Openbank is banking made easy and will offer the best high yield savings accounts in America that are simple and fast with a competitive rate.”