Santander is Reportedly Considering Exiting the UK Banking Market

Santander is reportedly rethinking its UK presence 20 years after entering the British banking market.

The Spanish lender weighs in a quantity of options, including leaving the UK entirely, the Financial Times (FT) reported Sunday (Jan. 19), citing sources familiar with the matter. These sources say that no announcement is imminent and that the The review is in its early stages.

The FT notes that this comes as Santander faces lower returns on its UK banks compared to other markets. The company also faces exposure related to a British court ruling regarding improper selling of car loans. Last year, Santander set aside £295 million ($359 million) to cover the potential costs of the decision.

A bank spokesperson told PYMNTS that the UK “is a core market for Santander and that is not CHANGES.”

A former executive told the FT that Santander UK – the retail and commercial banking operations in Great Britain – had caused failures within the larger organization in recent years.

The former executive said it was because of this DISAPPOINTMENT it is “always a possibility” that Ana Botínexecutive chair of Santander, will decide to sell the ringfenced bank. Two sources say it is not clear who wants to buy a unit.

Santander’s entry into the UK retail banking space came in 2004 when it bought the former building society Abbey National.

Santander last year launched high-yield savings accounts through it digital bank in the US, with Botín saying that the bank aims to have a full-service digital bank in the country by the end of 2025. As mentioned here at the time, Santander is also one of the few European lenders that has a retail presence in the US, with 409 branches in the country, especially in the Northeast.

In other banking news, PYMNTS spoke last week to Tammy Tinksenior vice president of commercial payments First National Bank of Omaha (FNBO), part of the 167-year-old bank’s entry into the digital age through collaboration with other organizations.

He told PYMNTS that regardless of the situation or the product being designed and launched, there is one basic principle.

“Being able to introduce a third party that we can stand with – where we appear together – to deliver the experience that our customers expect,” said Trilli.

PYMNTS Intelligence research found that two-thirds of the banks launched such collaborative efforts with FinTechs, with 75% of credit unions and banks saying that partnerships are necessary to meet customer expectations.