This would allow the first Spanish bank to improve its efficiency ratio of 47% with which it closed in 2018 to a range of between 42% and 45%. Of those 1,200 million in savings, 1,000 will come from Europe, and much of them from the Popular integration, which this year will involve an ERE that could affect about 3,000 employees and the closure of part of the network of offices. Well, according to the detail given to the financial community by the group’s CEO, José Antonio Álvarez,Printable Letter N expects to obtain an additional 250 million in synergies for the integration of Popular, compared to the 500 million initially estimated. This improvement in the cost to income ratio will be key to increasing the group’s profitability, which the bank’s management aims to raise from 12.1% in 2018 to between 13% and 15% in terms of tangible equity performance ( ROTE). What it does not indicate is when it will succeed, because one of the novelties of the new strategic plan is that it has ceased to be triennial – the last covered the period 2016-2018 – and only talks about the medium term, at a time when almost all the Spanish entities have postponed at least one year the fulfillment of their strategic plans due to the difficulties of the environment.
Printable Letter N
Anyway, another of the paths traced by Botín to achieve isThe goal is to intensify the digitization and use of technology by the entity. In this sense, Santander has announced an investment of 20,000 million euros over the next four years in its digital transformation and technology. “Technology is changing banking as we know it, that is why we are preparing Santander to take advantage of the enormous strengths that we have in the Group, such as technology, talent and size,” said Botín, who pointed out that technological commitment it will allow the entity to improve customer service and increase its linkage, but also to reduce costs, and “increase the group’s growth and profitability”.
At the technological level, one of the major bets of the bank, which with this movement seems to want to take the lead not only to other financial institutions but also to new digital competitors, will be the means of payment. Thus, and among other innovations, Printable Letter N has announced the launch of its international transfer platform, One Pay FX, as an open service and also available to non-customers of the entity under the name of Pago FX. Along these lines, the bank will extend the data card service of its Brazilian subsidiary Getnet as a global merchant payment platform called Global Merchant Services.