Santander to invest $6 billion in digital transformation in Latin America

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Santander to invest $6 billion in digital transformation in Latin America

Santander Group SA, the Boadilla del Monte-headquartered Spanish multinational financial services provider, had issued a statement on Wednesday saying that the world’s 16th-largest lender would lay off around $6 billion over next three years in a bid to advance digital transformation of its LATAM operations.

If truth is to be spoken, Santander usually depends on its LATAM businesses to cover up the losses which it incurs at its EU businesses with Brazil having been the largest market for the Spanish lender. Nevertheless, as the Madrid-based lender engenders roughly a 40.0 per cent of its overall profits from LATAM operations, the Spanish lender has reportedly been scaling up investments at its Latin American wings over recent past.

Besides, Santander’s latest move to inject a $6 billion in fresh capitals into its LATAM operations came forth just days after the financial services provider had raised its stakes in Mexican unit to 96.2 per cent.

On top of that, Santander’s LATAM businesses are housing more than 80 million of its 152 million customers, while the whole region has long been employing a half of the lender’s 193,000 staffs.

Santander to invest $6 billion for digital transformation

Apart from that, Santander was quoted saying in the statement that the Spanish multinational lender’s planned expansion in emerging economies would foster a faster growth than its core markets in EU alongside Britain.

The financial services provider said earlier this year that it had been investing an approximated $5.6 billion in technology sector per year as a group. A mass-scale expansion of Santander in Latin America, in tandem, had helped the Madrid-based Spanish banking industry giant weather a cascade of challenges in Europe since the era of great financial depression back in the 2007s.