The start of 2021 has certainly been momentous for Santander with the launch of Santander’s XXV Latam Conference followed by the XXVII Santander Iberian Conference last week. Although every year the Iberian Conference provides us with key insights into the region’s economy and development, this year’s conference was particularly pressing considering the impact Covid-19 has had on the region.

Despite not being able to be held in-person, the conference still served as the key summit for Iberian issuers and main institutional investors in the region. Over the course of the conference, experts in the digital, ESG and tourism sectors discussed the economic outlook for 2021 and the path to recovery for the region.

The various panels featured top management representatives from leading companies and institutions in Iberia and the wider globe, including Ignacio Galán, Chairman and CEO of Iberdrola, Carme Artigas, Secretary of State for Digitalization and Artificial Intelligence in Spain, Werner Stengg, Member and Digital Policy Expert in the Cabinet of Executive, Pilar López, President & CEO at Microsoft Spain and Paul Misener, VP for Global Innovation Policy & Communications at Amazon.

While there has been much focus recently on the accelerated pace of digital transformation and the demand for more sustainable practices in light of Covid-19, an understanding of how these two factors can complement and drive each other was a key topic for discussion during the conference. Of course, both ESG and digital innovation lie at the heart of Santander CIB’s strategy, so it was extremely insightful to hear expert opinions on these topics from a range of sectors and perspectives.

An interesting view held by Werner Stengg, Member and Digital Policy Expert in the Cabinet of Executive, was that what digital transformation and the sustainable economy have in common is their focus on improved efficiency. Through digital innovation, governments and institutions can iron out inefficiencies by streamlining and optimising the processes necessary to achieving more sustainable practices, such as reaching carbon neutrality. In this sense, both the digital and sustainable transition go hand in hand.

Another important topic of discussion that many panel speakers were in agreement with was the shift in consumer behaviour during the pandemic, and the significant impact this will have on future investment decisions. The pandemic has pushed sustainability to the forefront, with customers increasingly making informed decisions about which companies to buy services from based on the business’s sustainability commitments. As certain businesses become more competitive in line with their ESG scores, retail demand will drive a revolution in institutional investment choices, where ESG investments are favoured over non-sustainable investments.

Moreover, the toll the pandemic has had on key industries in the Iberian region, particularly tourism, has forced companies and institutions to rapidly adapt their digital offering in order to retain customers. As companies and institutions increasingly cater to consumer demand for more streamlined and accessible digital services, AI and machine learning are only set to become increasingly embedded within business models.

In order for the Iberian region to leverage the digital and sustainable opportunities indirectly brought on by the pandemic, the conference showed that what will be vital is the nurturing of digital talent in the region. Carme Artigas, Secretary of State for Digitalization and Artificial Intelligence in Spain, insightfully showed us that currently Spain is investing more than 1 billion euros to bolster its 2025 digital strategy, with the aim of reducing the socio-economic, digital and gender gaps in the region. Through digital innovation, the plan will also aim to provide more unity between the various territories in Spain, in addition to ensuring 80% of the region’s population have digital skills, with 50% of those being women.

Utilising digital innovation in order to support more sustainable and efficient practices is a top priority for us at Santander CIB. We strongly believe that digital transformation and ESG depend on each other for their full fruition, and the conference has confirmed that finding a way to intersect the two is on top of the agenda for many other institutions and companies across the region. Now more than ever public and private investments need to coordinate efforts to financially bolster these initiatives, and at Santander CIB we are fully committed to fulfilling our duty to the region.

By leveraging digital talent within the region and meeting consumer demand for more sustainable practices, the Iberian region is set to build an economy capable of facing the challenges of tomorrow. Of course, much still remains to be done, and we hope that by next year’s conference we will be meeting in person to share some of the exciting advancements we have pledged to achieve today.

Although the new year has been full of uncertainty and disruption due to Covid-19, an extremely important event was still able to go ahead - Santander’s 25th Annual Latin America Conference.

Even though this year’s conference was for the first time ever a purely digital event, the conference remained as relevant as its inception in 1997, uniting important leaders, figures and investment firms from LATAM’s political and economic sectors to offer valuable insights into the region’s future.

Through a series of round table presentations and one-on-one meetings, we took advantage of the conference’s virtual format to reach a far wider audience with a stellar line-up of speakers, including Hilary Clinto, former US Secretary of State; former US Secretary of State; Roberto Campos, President of Banco Central do Brasil; Mark Carney, former Governor of the Bank of England; and Alejandro Díaz de León, Governor of Banco de México. 

Looking at key topics such as LATAM politics, ESG and digital transformation, the conference celebrated LATAM’s potential to attract greater foreign investment and boost sustainable growth despite the severe setbacks of Covid-19.

Despite these challenges, opportunities in LATAM are vast. One of the most important takeaways from the conference was that LATAM cannot be treated as a homogenous region, with each country having different realities and needs. If investments in the region are to be successful, financial bodies and investors need to be flexible and take advantage of this difference rather than see it as a barrier. As LATAM emerges from the devastating impact of Covid-19, the region will be focused on restoring its economic infrastructure, opening up a much larger need for investments from the private sector and specialist investors.

Conference speakers also highlighted that what is needed now is greater global alignment in the approach to sustainable financing. Indeed, the increasingly high level of cooperation between countries in the region has greatly accelerated the rate of digitalization in LATAM. Moreover, LATAM’s major economies maintained low inflation, allowing central banks to keep interest rates under control, and the banking sector remained resilient with ample capital and liquidity buffers. With this economic backdrop, it is likely LATAM will come out of the pandemic stronger than before.

Santander has long recognised LATAM as one of the most promising regions for investments. As one of the richest regions in terms of natural resources and food production and boasting a strong talent pool, the demand for sustainable infrastructure development in the region is extensive.

As global attention increasingly gears towards LATAM, we expect to see gradual improvements in the region’s economic management, including better social inclusion and the raising of both private and public capital to boost investment in infrastructure, innovation and technology. Brazil, a key market for us, offers enormous potential in terms of ESG investments, and Mexico’s focus on fintech and digital banking is making exciting headways for digital transformation across the region. 

Although change in the region is not linear, the progress that is taking place on all fronts in LATAM has only strengthened Santander’s commitment to play a substantial role in the region. Having commenced trading with LATAM since 1857, we now have 76 million customers in the region, 56% more than three years ago. As we continue to invest extensively in the region under the leadership of 400 senior management teams, we will also expand on the work we did during 2020 to channel money across the region, reduce fees for SMEs, expand our scholarship programme and invest in new facilities.

If the inspiring conference speakers showed us anything, it is that the current crisis can be transformed into a crisis of resilience and sustainability. Now more than ever we need to treat climate risk seriously, and LATAM is proving an ideal place to do this. We hope that by next year’s conference, which will be held in person at Cancún, LATAM’s instrumental role within the global sustainable economy will be unquestionable.

Joao Simao will lead the new team as Global Head of Digital Solutions Group. 

The new unit will partner with global coverage and product teams, providing comprehensive support in the digital acceleration of customer’s business as well as developing value-added products and services, both in-house and in partnership with new entrants.

Madrid, 1st February 2020 - PRESS RELEASE

Santander Corporate & Investment Banking (Santander CIB) announced today the creation of a dedicated team to boost its offering in the area of Digital Solutions. This new global team, headed by Joao Simao, will collaborate closely with product teams across our platform to support our clients by providing strategic solutions as well as product and financing structures to help our clients in the digital acceleration of their business.

The new team will also develop value-added products and services, both in-house and in partnership with new entrants, in a moment where customer expectations and emerging technologies are accelerating the creation of new financial technology players.

Simao will lead the new team as Global Head of Digital Solutions, reporting to Darren Jones, Head SCIB UK and global head of Banking and Corporate Finance. This new team will elevate Santander’s strategic dialogue with clients in the area of technological and digital solutions, by developing innovative, sustainable and profitable digital capabilities and providing state of the art advisory services. It will produce also value-added products and services for clients, both in-house and in partnership with new entrants

Digital acceleration and Environmental, Social and Governance (ESG) are the defining trends for years to come. In 2020, Santander CIB successfully launched a dedicated ESG Solutions Team to help our clients in their transition towards a more sustainable business model. With the new Digital Solutions team, we are replicating the model to fully-leverage our internal expertise on the Digital arena. 

About Santander Corporate Investment Banking

Banco Santander (SAN SM, STD US, BNC LN) is a leading retail and commercial bank, founded in 1857 and headquartered in Spain. It has a meaningful presence in 10 core markets in Europe and the Americas, and is one of the largest banks in the world by market capitalization. Its purpose is to help people and businesses prosper in a simple, personal and fair way. Santander is building a more responsible bank and has made a number of commitments to support this objective, including raising over €120 billion in green financing between 2019 and 2025, as well as financially empowering more than 10 million people over the same period. At the end of the third quarter of 2020, Banco Santander had more than a trillion euros in total funds, 147 million customers, of which 22 million are loyal and 41 million are digital, 11,500 branches and 193,000 employees.

Santander Corporate & Investment Banking (Santander CIB) is Santander’s global division that supports corporate and institutional clients, offering tailored services and value-added wholesale products suited to their complexity and sophistication, as well as to responsible banking standards that contribute to the progress of society.

In the wake of covid-19, businesses and individuals alike have been further thrust into a digital society. To contend with the new normal, companies worldwide have placed an unprecedented focus on their digital offering to urgently meet the fast rising demand for services accessible anytime, anywhere.

In the corporate banking world alone, clients are increasingly relying on their financial institutions´ digital capabilities to conduct their day-to-day transactions and to service their more complex financial needs. The pandemic has proved that financial services providers, like Santander CIB, with robust technological abilities already in place, are well positioned to face this crisis whilst ensuring minimal disruptions to their clients.

Pre-covid-19

For many institutions in the corporate investment banking sector, the pandemic has accelerated the need to engage more deeply with their digital transformation agenda. However, even prior to covid-19, Santander CIB understood the importance of needing to implement technologically innovative processes to adapt to a changing and increasingly tech-savvy client base. Indeed, the digitally oriented client groups sought faster, streamlined, and more personalized experiences from their providers.

We identified that digital transformation was recognized as the key to driving profitability and simultaneously improving customer experience. In recent years, digital innovations such as machine learning, robotics, blockchain and cloud systems have completely altered the banking experience by providing, quicker, cost-effective and more efficient and secure banking solutions for clients and stakeholders worldwide.

It is now abundantly clear that institutions like Santander CIB - that were on the early wave of change and invested and explored new measures prior to covid-19 - are well positioned to provide their services to in an increasingly digitized corporate landscape.

Santander CIB Digital Transformation

Santander CIB recognizes that technological innovation results in mutually beneficial outcomes for both the business and its clients. Technology is one of the cornerstones on which Santander executes its strategic planning, capabilities for driving profitability, boosting customer experience and increasing customer loyalty.

In recent years, Santander CIB invested in a multi-year digital transformation. We changed our commercial model to offer greater availability and a more direct approach through digital channels, without losing our signature personal approach and services.

We used digital innovation to create an improved functional design that makes our services more comfortable to use. We have also made them more accessible, by stripping away architectural barriers and increasing the technology available, providing a more agile, personalized and customizable experience.

Another key aspect is the implementation of blockchain technology, which allows data and funds to be transferred in a completely secure manner thanks to sophisticated coding and encryption. Santander CIB is a pioneer in the use of this technology having launched the first bond with end-to-end blockchain technology. This is a first step towards a possible secondary market for tokenized securities in the future.

In addition to all of the above, Santander Group recently hired three leading technologists to help boost its strategy and digital transformation. Combined, all of these elements aim to provide our clients with an enhanced experience that caters to their needs, while allowing Santander CIB to become more competitive in the open market, deliver more cost effective services, and increase our returns.

As the digitized society continues to evolve, we are well positioned for what comes next, and we look forward to growing in tandem with our loyal clients.