The Spanish fintech ecosystem recognizes that in the last two years Santander has given a boost to its digital area that has put it ahead of the traditional BBVA leader.
Santander has given a big boost to its digital banking approach in the last two years. The company has signed ambitious agreements with some leading companies such as Raisin. And is in continuous search of fintechs to buy them and incorporate them into their business. Like the rest of the actors of the world banking, the Cantabrian entity does not want to be left behind before the digital change but to incorporate the new business models to its structure.
How Santander invests in various fintechs
The head of Strategic Digital Agreements of Santander, Diego Calascibetta, reported last week that the bank currently has investments in 24 fintechs around the world but none of them is Spanish. The reason, he said, is that the ecosystem of banking startups in Spain is still far below in terms of traction. A concept that points to the ability of a technology business to reach the critical mass of users from which it can be scalable and profitable.
According to the manager, the bank of Ana Botín is constantly searching for banking technology companies that can incorporate interesting and disruptive business models into their portfolio.
Through Santander Innoventures, Santander has investments in all types of fintechs. Many of them from the North American market, but also from others such as Sweden, Germany, the United Kingdom or Israel. The strategy is not to buy 100% of the companies but to acquire shares in them that allow them to obtain a good positioning and knowledge of their business model.
Someday we will invest in Spain
Maybe one day the first investment in a Spanish fintech will come, said the bank’s director. Who clearly sees that, there will come a time when Spain is as evolved as another market and they can make clearer investments in their own market. Meanwhile, he said, a multinational bank like the one presided over by Ana Botín must operate with criteria different from those of the nationality of the companies that it acquires. And that point rather to the options of the types of business that can be successful in the model of digital banking of the future.
It is more feasible to invest in fintechs
Santander believes that it is more feasible right now to invest in fintechs than to try to do technological development in an organic way.
As it is believed in the company itself, it is more feasible to acquire more interesting fintechs than to generate this innovation internally. Aince Santander, like other actors of the world’s largest banking, has a very large structure and is immersed in the cultural change that makes the shift to smaller structures still important.
Calascibetta believes that the bank is on the path of making the cultural change it needs and that people start to internalize it. Sources from the Spanish fintech sector agree that Santander has managed to boost its digital strategy over the last two years. Which has put it at the level or even for some, exceeds BBVA. And which for more than ten years has been managing Francisco González, had already made the decision to position himself as a leader in digital banking.
Also published on Medium.