Santander’s chief has dismissed suggestions that the bank might exit the UK market due to excessive red tape. Executive chairman Ana Botin said “we love the UK” as she said the recent reports were rumours spread by investment bankers.
Executive chairman Ana Botin expressed her commitment to the country at the World Economic Forum in Davos. She highlighted the post-Brexit benefits for banks operating independently from the EU.
Ms Botin said: “We love the UK. It’s a core market and will remain a core market for Santander. Punto [Spanish for full stop].
“The UK has a huge opportunity. Why? Because it can move faster. The UK does not have to agree with 27 countries now.”
“You know the army of investment bankers that wants to get fees? So if they start, these kind of people start looking at MandA [mergers and acquisitions], they start looking around. It’s definitely not coming from us.”
A spokesperson for Santander UK reinforced this stance: “We remain focused on providing excellent products and services to our 14 million customers in the UK. The UK is a core market for Santander, and this has not changed.”
Reports have suggested that Santander is getting frustrated by the regulations, high costs and poor returns that come with operating in the UK.
Ms Botin did not deny her frustration with the current red tape “constraining ” banks. She said: “Let’s take a pause on regulation because that is constraining growth, big time.”
Santander has been working to resolve a scandal surrounding allegations of mis-selling car loans, having set aside £295 million for compensation. A court ruling last year found that the bank had paid “secret” commissions to car dealers without informing borrowers, reports the Express.
Should Mrs Bodin change her mind and Santander decide to leave the country, the bank’s assets would likely be sold, attracting potential buyers. According to Alastair Douglas, CEO of personal finance app TotallyMoney, a “safe and regulated environment” is crucial.
He said: “The Government needs to create a safe and regulated environment that encourages innovation, investment, and better customer outcomes. Instead, it feels like we’re travelling in the opposite direction.”
“In recent years, new UK banks and fintech have done a great job of creating a better banking system, utilising app technology and open banking data to put people in control of their money and data. This is where we need to see ongoing and long-term support.”