It has been actively hiring across North America
Spanish bank Banco Santander SA has obtained a Canadian banking licence, marking a significant step in its strategic expansion across the Americas. The Office of the Superintendent of Financial Institutions (OSFI) issued an order in early March for Santander Consumer Bank to “commence and carry on business,” as noted in a recent government publication.
A representative for Santander confirmed the acquisition of the Canadian banking licence but declined to provide further details regarding the bank’s plans within the country.
This development aligns with Santander’s broader initiative to strengthen its presence in the Americas. The bank has been actively hiring in the United States and launching new digital banking platforms in both the US and Mexico. Chairwoman Ana Botín emphasized last month that the company’s focus will “continue to be more on the Americas.”
Bloomberg reported that the authorization of a new foreign entity in Canada’s banking sector follows recent claims by US president Donald Trump, who inaccurately stated that US banks are prohibited from operating in Canada. In reality, over a dozen US financial institutions currently operate in Canada, with three holding the same type of licence as Santander, according to OSFI’s website.
Santander’s journey into the Canadian market began over a decade ago with the acquisition of Carfinco Financial Group, a car-financing company. The bank applied in July 2019 to become a Schedule II bank, a designation for Canadian subsidiaries of foreign banks. Such institutions are permitted to conduct the same banking activities as domestic banks, including accepting deposits, issuing loans, offering wealth management services, and providing credit cards. Currently, there are 15 such banks operating in Canada, as per OSFI’s records.
In April 2024, Canada’s minister of finance issued letters patent incorporating Santander Consumer Bank as a federally regulated financial institution. The recent OSFI approval was the final requirement for Santander to commence full banking operations in Canada.
Santander’s Canadian subsidiary, headquartered in Edmonton, Alberta, reported nearly 300 employees and revenues of €76 million (approximately $82 million) in 2024. The company has indicated plans to maintain its head office in Edmonton as it expands its services within the Canadian market.
How will Santander’s entry impact the Canadian banking landscape? Share your insights in the comments below.
