Santander Goes National in the United States with Openbank, Bringing High Yield Savings Opportunities to More Americans

Rhea-AI Summary

Santander Bank has launched Openbank, a new digital banking platform offering a 5.00% APY high-yield savings account nationwide in the United States. The platform features no fees, low minimum deposits of $500, and a quick account opening process taking less than four minutes. This expansion allows Santander to serve customers nationally beyond its Northeast branch network and grow deposits as a lower-cost funding source for its consumer lending operations.

The platform is built on Santander's proprietary technology stack and provides FDIC-insured deposits up to $250,000 per depositor. According to Santander's research, 60% of middle-income Americans haven't taken advantage of higher yields, often due to perceived barriers in account opening processes. The account has received a 4.5/5 rating on Bankrate.com.

Positive

• Launch of high-yield savings account with competitive 5.00% APY
• National market expansion beyond Northeast footprint
• Lower-cost funding source for consumer lending operations
• Quick account opening process (under 4 minutes)
• Strong early results reported by management

Negative

• $500 minimum deposit requirement
• Variable rate account subject to change without notice

Insights

Financial Services Analyst

Santander's nationwide expansion of Openbank marks a strategic pivot towards digital banking, offering a competitive 5.00% APY savings product. This digital-first approach allows Santander to expand beyond its traditional Northeast footprint while maintaining lower operational costs compared to physical branches. The move is particularly well-timed, targeting the 60% of middle-income Americans who haven't capitalized on higher yields. The platform will serve as a lower-cost funding source for Santander's consumer lending operations, particularly its auto business, potentially improving the bank's net interest margins. The $102 billion asset bank's integration of proprietary technology stack demonstrates commitment to technological advancement while maintaining competitive advantage over pure-play fintechs.

Digital Banking Specialist

The four-minute account opening process and proprietary technology stack integration represent significant competitive advantages in the digital banking space. The 4.5/5 Bankrate rating validates the platform's user experience quality. The biometric security implementation addresses growing consumer concerns about digital banking safety while maintaining FDIC insurance coverage provides traditional banking security. The platform's ability to launch new products "in months, not years" positions Santander to rapidly adapt to market demands and compete effectively with both traditional banks and fintechs. This agile approach, combined with the backing of a global financial institution, creates a compelling hybrid model that could drive significant deposit growth.

• Openbank by Santander offers a high yield savings account featuring an attractive Annual Percentage Yield (APY) of 5.00% and frictionless account opening that takes less than four minutes.
• Eligible U.S. customers can take advantage of Openbank’s safe and secure digital banking experience, built on Santander’s proprietary technology.
• Openbank was built upon Santander’s legacy of strength and stability, as a global financial powerhouse with 171 million customers.

BOSTON--(BUSINESS WIRE)-- Santander Bank has officially launched Openbank, a new digital banking platform, whose initial offering brings high yield savings opportunities to more Americans. Openbank’s high yield savings account features an attractive Annual Percentage Yield (APY) of 5.00%*, no fees, low minimum deposits, and an exceptional customer experience with frictionless account opening that takes less than four minutes.

With the launch of Openbank, Santander expands its addressable market in the U.S., complementing its existing branch network to serve customers nationally and grow deposits to be a lower-cost funding source for the company’s consumer lending, including its at-scale Auto business.

“Openbank brings to life our strategy to build a digital bank with branches to accelerate growth and provide easy access to high yield savings accounts for U.S. customers nationwide,” said Tim Wennes, CEO of Santander US. “The early results for Openbank have been strong, and we expect our new customers will find Openbank to be a seamless and easy digital experience, backed by one of the world’s largest financial services companies with 171 million customers around the globe.”

Santander US’s research shows that 6 in 10 middle-income Americans have not taken action to benefit from higher yields available. Consumers have been reluctant to act on higher interest rates because of commonly held misperceptions, such as that opening an account is overly burdensome, time-consuming, and not worth it. Openbank’s High Yield Savings account’s attractive APY is among the best savings opportunities available on the market, and the account has been rated 4.5 stars out of 5 on Bankrate.com.**

Openbank provides eligible U.S. customers with a digital banking experience built upon Santander’s legacy of strength and stability, as a global financial powerhouse. This launch marks the first time Santander integrates its entire core, proprietary technology into one stack, offering customers a seamless and secure online banking experience.

“High yield savings accounts are only the beginning, as we introduce Openbank to customers across the U.S. outside our historic footprint in the Northeast,” said Swati Bhatia, Head of Retail Banking & Transformation of Santander Bank. “At Santander, consumer banking is in our DNA. Operating a digital consumer bank within a global consumer bank allows us to innovate faster like a fintech and introduce new products in a matter of months, not years.”

Additional products will be introduced in time to ensure that Openbank by Santander is meeting the ongoing needs of its customers.

As part of the Openbank by Santander launch, Santander Bank created an in-person and mobile launch event called “Play to Save.” The innovative experience included two games focused on saving and making smart money moves. For the in-person experience, consumers were able to play using a large game controller placed in front of a projected gaming screen in Austin and Miami.

Openbank by Santander deposits, through Santander Bank, are FDIC insured up to $250,000 per depositor, per ownership category and the platform employs biometric security protocols to add an extra layer of security, so customers can bank digitally with confidence.

For more information about Openbank by Santander, including eligibility and how to open an account, please visit openbank.us.

About Santander Bank, N.A.

Santander Bank, N.A. is one of the country’s leading retail and commercial banks, with $102 billion in assets. With its corporate offices in Boston, the Bank’s more than 5,100 employees and more than 1.8 million customers are principally located in Massachusetts, New Hampshire, Connecticut, Rhode Island, New York, New Jersey, Pennsylvania and Delaware. The Bank is a wholly-owned subsidiary of Madrid-based Banco Santander, S.A. (NYSE: SAN), recognized as one of the world’s most admired companies by Fortune Magazine in 2024, with approximately 171 million customers in the U.S., Europe, and Latin America. It is overseen by Santander Holdings USA, Inc., Banco Santander’s intermediate holding company in the U.S. For more information on Santander Bank, please visit www.santanderbank.com.

Openbank in the United States is a division of Santander Bank, N.A., which is a Member of FDIC and a wholly owned subsidiary of Banco Santander, S.A. © 2024 Santander Bank, N.A. All rights reserved. Santander, Santander Bank, Openbank, the Flame Logo are trademarks of Banco Santander, S.A. or its subsidiaries in the United States or other countries. All other trademarks are the property of their respective owners. For more information on Openbank in the United States, please visit www.openbank.us.

*Interest Rates and Annual Percentage Yields (APYs) are accurate as of 12:01 am Eastern Time on December 10, 2024. The products and rates we offer may vary between locations, are available in select markets only, and are subject to change without notice. Availability for this product will be based on the residential zip code entered when account is opened within online application process. This is a variable-rate account and the rate applicable to your balance tier may change at any time without notice. Fees may reduce earnings. A minimum deposit of $500 is required to open a Openbank High Yield Savings account. Personal accounts only.

**Rating from Bankrate.com as of December 10, 2024.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241210832946/en/

Media Contact

Andrew Simonelli

andrew.simonelli@santander.us

Source: Santander Bank, N.A.

FAQ

What is the APY offered by Santander's Openbank high-yield savings account?

Openbank by Santander (SAN) offers a 5.00% Annual Percentage Yield (APY) on its high-yield savings account as of December 10, 2024.

What is the minimum deposit required for Openbank's savings account?

The minimum deposit required to open an Openbank high-yield savings account is $500.

Is Openbank by Santander FDIC insured?

Yes, Openbank by Santander deposits are FDIC insured up to $250,000 per depositor, per ownership category.

How long does it take to open an Openbank account?

According to Santander (SAN), the account opening process takes less than four minutes to complete.