Banco Santander Launches Version of Botin's Signature Checking Account

  By Jeannette Neumann 
 

MADRID--Banco Santander SA (SAN, SAN.MC) has launched a version of Ana Botín's signature checking account aimed at small and medium-sized Spanish businesses as the eurozone's largest lender seeks to gain a bigger share of its home market.

Santander said the 1|2|3 account offers Spanish businesses returns on social security, payroll, tax and other payments made from the checking account. The business must have quarterly revenue greater than 9,000 euros ($9,900), and meet other conditions to receive the returns.

The account, Santander said in a statement on Tuesday, is based on the one the bank launched for individuals in May, which has set off a scramble among Spanish competitors worried about keeping their customers.

The launch of a similar account for businesses shows Santander is doubling down on its bid to grow market share in Spain amid low-interest rates and sluggish growth in loan volumes that are hampering Spanish banks profitability even as the country's economy recovers.

Santander executives have said the 1|2|3 account is a long-term strategy to bring in new clients and try to sell them more products, which will help the bank boost profitability.

Some analysts say the account is a good deal for clients given the potential returns, but an expensive bid by Santander. The checking account is available for individuals who were already banking with Santander regardless of the new offer.

The 1|2|3 account for businesses is also available for existing clients.

Write to Jeannette Neumann at [e-mail]

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November 03, 2015 11:38 ET (16:38 GMT)

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