Santander Expands in the US with Verizon Partnership as UK Branches Face Closures

Spanish banking giant Santander is making a bold push into the US market, teaming up with telecoms giant Verizon to offer customers exclusive financial perks. Through its Santander Bank arm, the financial powerhouse is launching a new high-yield savings account for Verizon users, promising competitive interest rates and mobile bill savings. This strategic move comes as Santander scales back its physical presence in the UK, shutting 95 branches amid a broader shift towards digital banking.

What's in the Santander-Verizon Partnership?

Santander's expansion in the US is being spearheaded by its partnership with Verizon, introducing Verizon + Openbank Savings, a high-yield digital savings account tailored for Verizon mobile and 5G Home customers. This new account offers an interest rate 10 times the national average, allowing users to save up to £138.85 ($180) per year on their Verizon wireless bills.

The initiative is part of Verizon's growing financial services portfolio, extending customer benefits beyond telecommunications. Users who maintain an average daily balance of at least £771.41 ($1,000) qualify for savings on their monthly bills, with even greater rewards for higher balances.

In its official announcement, Santander highlighted that this move aligns with Verizon's commitment to adding financial value for its customers while leveraging Santander's digital banking expertise. The initiative aims to provide customers with cost savings and competitive returns, positioning Verizon as a leader in customer-centric financial solutions.

A Milestone for Santander's Openbank in the US

For Ana Botín, Executive Chair of Banco Santander, the Verizon partnership represents a key milestone in Santander's expansion strategy in the US. It offers an opportunity to scale Openbank, the bank's digital arm, and extend its secure, fee-free banking experience to millions of new users.

Openbank launched in the US in late 2024, quickly surpassing £2.31 billion ($3 billion) in deposits. The platform offers high-yield savings accounts with low minimum deposits, 24/7 access, and zero fees. By 2025, Openbank plans to introduce certificates of deposit (CDs) and current accounts, further diversifying its offerings.

'The Verizon partnership is a significant milestone for Santander as we scale our US business further by bringing Openbank's secure and simple banking experience to Verizon's customers nationwide—backed by a leading global bank that has earned the trust of more than 173 million customers,' Botín stated.

Meanwhile, Hans Vestberg, Chairman and CEO of Verizon, added: 'Our scale enables the creation of exclusive financial services solutions and savings accessible only to Verizon customers. Adding the power of Openbank's high-yield savings account to our financial offerings provides unique value in both the telecoms and financial services sectors.'

Santander's UK Branch Closures Amid Digital Shift

While Santander is strengthening its position in the US, it is scaling back in the UK, where it recently announced the closure of 95 branches—around 20% of its total network. The move follows a widespread shift towards digital banking, with more customers opting for online and mobile services.

This decision will affect approximately 750 jobs, though Santander has pledged to offer redeployment opportunities where possible. The closures reflect the changing landscape of retail banking, as digital transactions overtake in-person visits.

Santander's Global Performance and Future Plans

Despite these structural changes, Santander remains financially strong. The bank recently posted a record net profit of £2.81 billion (€3.265 billion) in Q4 2024, an 11% increase year-on-year. It also unveiled plans for a £8.36 billion (€10 billion) share buyback over the next two years, reinforcing its commitment to shareholder value.

In 2024, Santander Bank invested over £10.03 million ($13 million) into 360 organisations, focusing on education, entrepreneurship, and employability. This aligns with its long-term strategy of community development and sustainable finance.

Looking ahead, Santander plans to launch new financial products in late 2025, further diversifying its offerings and expanding its global footprint. With its US expansion through Verizon and a refined focus on digital banking, Santander is positioning itself for continued growth in an evolving financial landscape.