Santander will accelerate digitization despite the crisis

Santander will accelerate digitization despite the crisis

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It is critical to advance in technological transformation due to the massive use of digital banking caused by the pandemic. It invests 5,000 million a year.

Santander will maintain its focus on digital transformation despite the coronavirus crisis. The bank will review the objectives of the roadmap it presented to the market last year in the coming months, but will keep digitization as a strategic pillar. Some competitors have already anticipated adjustments in their transformation plans in recent weeks due to the economic recession caused by the pandemic. The British Lloyds, for example, will stop investments in technology planned for three years for 3,000 million pounds (3,400 million euros).

Santander believes that digitization, which was already one of its axes of action, will now gain even more prominence. Anticipate that the disruption caused by the technological revolution will be accelerated by the massive use of digital banking motivated by the health crisis and mobility restrictions.

Customer trust

“The implementation of our digital transformation plans is critical because, when the coronavirus crisis passes, the pace of transformation will pick up once again. And since many customers are relying on digital banking during the crisis, change is likely to accelerate. “, said Ana Botin, Santander’s president, at the shareholders’ meeting held last Friday. “Digitization is the strategic pillar where I see greater potential for growth and transformation for the group,” he said.

The objectives that Santander made public last year include an investment in digitization of 20,000 million euros in four years. It implies an annual budget of 5,000 million euros. It is a figure equivalent to 10% of the total income that the group generated in 2019, when they touched 50,000 million.

Analysts had expected Santander to generate annual revenues of between 50,000 and 53,000 million until 2022, a range that has dropped to between 45,000 and 46,000 million as a result of the pandemic.

While waiting for Santander to outline its new goals, a budget of 5,000 million would be around 11% of the new revenue forecast.

It must also be specified if it will accelerate the achievement of other objectives related to technological transformation. ANDThe bank currently has 37 million digital clients and its horizon was to reach 50 million in the medium term. As for digital sales, which now represent 36%, the aspiration is to exceed 50%.

In Spain, the influx to branches has fallen about 80% due to the pandemic, according to the Funcas Financial Digitalization Observatory. Seven mobile applications from financial institutions are currently among the most popular on Google Play.

“This boom in the adoption of digital services is not only limited to balance inquiries or transfers. It is beginning to be observed how clients use the digital channel for more complex services, such as mortgage and investment advice,” the Observatory concludes.



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