Santander is looking to transform its business model. The well-respected financial institution will launch a standalone digital unit for UK SMEs. The purpose of this new venture is to target small and medium-sized enterprises in this part of the world. It will mainly focus on lending, payrolls, and pensions, along with other services.
SMEs all over the world are in dire need for access to specific financial services. This is especially true when talking about lending, pensions, and payroll services. Santander acknowledges there is a need for such services. As such, the financial firm is working on a standalone unit for the United Kingdom. This firm is mainly targeting UK-based small businesses and brings some stiff competition to existing companies.
A Positive Solution by Santander
It is not the first time this plan by Santander comes to light. The Spanish bank made its intentions clear in October of 2017. At that time, details were kept specifically vague, but that is only to be expected. With the UK opening up its smaller banking sector for additional players, interesting developments are on the horizon. Boosting competition in the banking sector is always a positive development, especially for consumers and SMEs.
It is a bit unclear what to expect from this open digital financial services platform. More information is expected to become available in the near future. This project is referred to as a “speedboat” although it remains a rather vague description. This is not the first speedboat venture by Santander either. The firm launched OpenBank in Spain, where it serves 1.3 million customers. Such a venture may come to the UK in the near future as well.
For the UK SME industry, this is excellent news. It has become evident small companies are looking for ways to access more financial services. Santander can make a big impact in this regard if their venture proves to be successful. For now, it remains unclear if that will indeed be the case. A stronger focus on smaller companies is an exciting development for the Spanish bank.
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