Spanish lender Banco Santander has received a banking licence in Canada, marking a step in its strategy to expand operations across the Americas.
The Office of the Superintendent of Financial Institutions (OSFI), Canada’s banking regulator, issued an order last month allowing Santander Consumer Bank to “commence and carry on business,” as reported in a recent government publication, reported Bloomberg.
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A spokesperson for Santander confirmed the acquisition of the Canadian banking licence but did not provide further details regarding future plans in the country.
The Spanish bank has been actively hiring in the US and has launched a digital banking service in both the US and Mexico as part of its regional growth strategy.
Chairwoman Ana Botin stated last month that the company’s emphasis will “continue to be more on the Americas.”
Santander has maintained a presence in Canada for over 10 years, having acquired the car-financing firm Carfinco Financial Group.
The bank applied in July 2019 to become a Schedule II bank, which allows foreign banks to operate as Canadian subsidiaries.
These subsidiaries can engage in the same banking activities as domestic banks, such as accepting deposits, issuing loans, providing wealth management services, and offering credit cards.
Last year, Canada’s Minister of Finance issued letters patent to incorporate Santander Consumer Bank as a federally regulated financial institution, with OSFI approval being the final requirement.
The Canadian subsidiary, located in Edmonton, Alberta, employs nearly 300 staff and reported revenue of €76m ($82m) in 2024.
Santander has previously stated that it will retain the head office of its new bank in Edmonton.
In February this year, Banco Santander denied reports of a potential sale of its UK retail business following claims of discussions with NatWest.
