Spanish Bank Santander (SAN) Partners with Telecom Giant Verizon for U.S. Expansion

Spanish bank Banco Santander (SAN) has entered into a deal with telecom giant Verizon (VZ) to expand its presence in the U.S. market, according to the Wall Street Journal. Santander intends to leverage Verizon’s extensive customer base to enhance its footprint in the lucrative U.S. market. As of writing, SAN stock was trending higher by nearly 2% in Tuesday’s pre-market trading, while Verizon stock was flat.

Santander Strikes Deal with Verizon to Expand its U.S. Presence

Santander is the largest bank in Spain. According to Federal Reserve data, it ranks 28^th in the U.S. market with $100 billion in overall assets, leaving much room for further expansion. Through its deal with Verizon, Santander will offer the telecom company’s customers bill credits if they open a high-yield savings account with its new digital bank platform, Openbank, and meet certain balance thresholds.

Openbank was launched in late 2024 to expand Santander’s reach in the U.S. This digital platform has garnered over $3 billion in deposits. Moreover, Santander is exploring the rollout of other offerings in the U.S., like credit cards and cross-border instant payments. It is seeing notable traction in certain areas. For instance, fees in Santander’s U.S. corporate and investment banking business doubled in 2024 compared to the prior year.

In an interview with the Wall Street Journal, Santander’s executive chair Ana Botín, said that the bank’s partnership with Verizon is a “major step forward” for its growth strategy in the U.S. Botin expects the bank’s deposit base to increase via the Verizon deal, which will enable the bank to lend more in the U.S., where it is already a major auto lender. Further, Botin expects a less stringent regulatory backdrop under the Trump administration to boost Santander’s expansion in the times ahead.

Overall, Santander is bolstering its international footprint. Last month, the bank announced its plan to invest $2 billion in Mexico over the next three years as part of its efforts to at least double its size in the country.

Wall Street’s Ratings on SAN and VZ Stocks

Wall Street is cautiously optimistic on both Santander and Verizon stocks. Santander’s U.S.-listed stock has a Buy rating from one analyst with no specific price target. Meanwhile, Verizon’s Moderate Buy consensus rating is based on six Buys and 11 Holds. The average VZ stock price target of $46.27 implies about 6% upside potential.

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