Santander plans the closure of the largest number of offices in Spain from the pandemic. According to Digital economymore than 200 branches will lower the blind this year. The arrival of Ignacio Juliá – a manager with DNA DNA forged in ING – to the direction of Santander Spain is no accident.
It is a symptom.
Similar to what happens to other IBEX companies – as a telephone debating between transforming between technology company or assuming the decline as a traditional telecus -, classical banking has an existential dilemma ahead.
- On the one hand, Maintain physical offices has become a financial ballast to the Neobancoswhich operate with infinitely lighter and more efficient structures.
- On the other hand, those same offices They are a competitive advantage for certain demographicparticularly among over 60 years, who concentrate a large part of the financial assets in Spain.
Neobancos have gained ground in basic operation and current accounts, but still have important limitations in more complex products, such as mortgages or heritage management.
Santander himself has recognized in his annual report “the value of the human connection” provided by branches, especially for vulnerable clients, while simultaneously advances towards what defines as “a digital bank with branches”. The Ying and the Yang.
Investment management is that space that still has traditional banking to uncheck from the Neobancos, where even the face to face with the manager (the one who gives a branch) can be an incentive for the client. There they face independent platforms, such as Trade Republic or the Spanish Indexa, with increasing traction, better fame … and lower commissions. Of course, they do not usually have exclusive products for large heritage, more complicated land for Fintech.
Santander has no urgency for these changes. In 2024 he got a record benefit of more than 12,500 million euros. Your current business model is still profitable. The issue is whether the digitalization strategy combined with selective physical presence will be sufficient to maintain its relevance when the digital generation becomes the main segment with heritage. Traditional bank is not disappearing, but it is in full metamorphosis.
It is looking for a balance between digital efficiency and the added value that human interaction provides.
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