SANTANDER TO LAUNCH A $100M FUND FOR FINTECH COMPANIES OUT OF LONDON

2 July 2014

Financial Technology firms (Fin-Tech) will have a new source of investment with the launch of a Venture Capital fund for Fin-Tech Companies from Santander. The Venture Capital (VC) fund – which will be based in London, but with a global remit – will not only provide Fin-Tech companies with much needed finance, it will also support the digital revolution and ensure Santander’s customers world-wide benefit from the latest know-how and innovations across the Banking Group’s Geographies.

The fund identifies a significant opportunity for Santander, with Banks having traditionally only accounted for 10 per cent of Fin-Tech innovations; whilst VC backed companies have supported 60 per cent. In addition, two-thirds of Fin-Tech financing in Europe originates in the UK.1

It will be 100 per cent owned by Santander UK; but will be a self-standing, specialised, organisation, fully dedicated to the remit of supporting Fin-Tech companies worldwide. The fund will initially focus, among others, on:

  • Digital Delivery of Financial Services – aimed at reinforcing distribution and the overall customer experience in the new digital environment ”E-commerce and Payments ventures;

  • Online lending – Ventures using new data sources to provide better access to credit, including crowd and social funding; 

  • E-Financial investments – online systems to distribute financial investment products with self-service and planning capabilities organised around the lifecycle; and,

  • Big Data Analytics – platforms to leverage financial and not financial information to provide better services to our customers

Ana Botin, chief executive of Santander UK, said: “The UK is a global leader in financial innovation. The Santander Fin-Tech Fund builds on our philosophy of collaboration and partnership with small and start-up companies at Santander. In this case our aim is to provide Fin-Tech companies with much needed capital, whilst we gain know-how and our customers benefit from the latest thinking. I am immensely proud to be involved in this fund, as it will help the UK and all of the Santander Group to remain at the forefront of financial technology, whilst benefiting our customers.”

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Notes to editors

About Santander

  1. The Boom in Global Fintech Investment: A new growth opportunity for London – Accenture 2014

Santander UK is a leading financial services provider in the UK and offers a wide range of personal and commercial financial products and services. At 31 December 2013, Santander UK serves more than 14 million active customers with c. 20,000 employees, c. 1,000 branches and 50 regional Corporate Business Centres. Santander UK is subject to the full supervision of the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) in the UK. Santander UK plc customers are protected by the Financial Services Compensation Scheme (FSCS) in the UK.

Banco Santander (SAN.MC, STD.N, BNC.LN) is a retail and commercial bank, based in Spain, with a presence in 10 main markets. Santander is the largest bank in the euro zone by market capitalization. Founded in 1857, Santander had EUR 1.24 trillion in managed funds, 103 million customers, 13,927 branches – more than any other international bank – and 182,958 employees at the close of 2013. It is the largest financial group in Spain and Latin America. It also has significant positions in the United Kingdom, Portugal, Germany, Poland and the northeast United States. Santander registered EUR 4.37 billion in attributable profit in 2013, an increase of 90% from the previous year.

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