Spanish bank Banco Santander said it will invest over $2 billion in Mexico over the next three years, marking a significant milestone in its growth strategy.
This not only demonstrates the confidence of the bank in the Mexican economy but also reflects the relevance that the Latin American market has been gaining amongst international financial institutions.
According to Reuters, Santander’s Executive Chair Ana Botín announced an event held in Mexico City, where the bank presented its Openbank mobile-first banking platform.
How can this investment impact on Mexico’s economy?
During the event, Botín explained that this investment, which counts for at least 42 billion pesos ($2 billion) in total, will be distributed among several digital segments such as Openbank and another part to Santander Bank itself as well as other areas.
She detailed that the funds will be used to improve the technological infrastructure and customer service capabilities in the Mexican market, stating: “We are announcing an investment plan for more than $2 billion over the next three years.”
Foreign direct investment is anticipated to help generate jobs and strengthen the instruments of the money supply, essential for strengthening the performance of the whole economy.
At the same time, Banco Santander seems to be looking to sink deeper into the digital banking market which has become an ever-increasing part of the world.
Santander’s Openbank launch: exploring the digital bank world
Launched recently in Mexico, Openbank intends to be a completely digital banking solution focused on the contemporary consumer.
They provide several services like savings accounts, investments, and loans, among others., which can all be done via a simple app.
Openbank’s launch emphasizes Santander’s focus on innovation as part of the digitization strategy that can help it catch the valuable millennial and Gen Z consumer segments.
Botín reiterated the bank’s long-term growth view in the region, stating during the presentation that “Mexico is the country with the most growth potential that we see regionally.”
Mexico has undergone a digital evolution in recent years, thanks to greater internet access and a larger appetite for online banking solutions.
This resulted in innovations such as Openbank, perfectly catering to the new-age consumer need in a fast-changing market. For instance, cooperation (or collaboration) and support from the government.
Previous deals indicate Santander’s commitment to Mexico
Santander’s investment announcement follows a meeting held late last week between Ana Botin and Mexican President Claudia Sheinbaum.
Sheinbaum mentioned the amount of investment earlier in the day, however, did not elaborate on the nature of the investment.
However, the collaboration between the government and private sector companies such as Banco Santander is vital to help restore Mexico’s economy and allow it to grow.
Santander had previously agreed to a $500 million-a-year investment in the country until 2025 in previous deals with former president Manuel López Obrador, the lack of change reflects the bank’s continuing commitment to the region amid global uncertainties.
Not only does this long-term strategy highlight Santander’s commitment to the Mexican market, but it falls in line with a broader trend in which international banks are paying much more attention to Latin American economies.
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