• Santander is launching its Openbank digital banking brand in the U.S. and Mexico.
• Openbank currently serves two million customers across Spain, Germany, the Netherlands, Portugal, and Argentina, and counts $19.3 billion (€18 billion) in deposits.
• Santander aims to launch in the new regions in the second half of this year.

Spain-based mega bank Santander announced plans to launch a new digital offering in the United States under the Openbank brand in the second half of this year. 

Santander launched Openbank in 1995 as a telephone bank. The bank moved online in 1999, becoming an online broker for real-time trading in domestic and international markets. Openbank currently offers payment cards, including debit and credit cards, prepaid cards, and travel cards; personal loans and mortgages; bank deposit tools; home, life, car, and digital insurance; as well as mobile banking capabilities and PFM tools. Openbank serves two million customers across Spain, Germany, the Netherlands, Portugal, and Argentina, and counts $19.3 billion (€18 billion) in deposits.

“Openbank is the largest digital bank in Europe by deposits with among the highest customer loyalty and satisfaction,” said Openbank Executive Chair Ana Botín. “We remain committed to growing our business in the United States, the largest financial services market in the world, leveraging our proprietary technology and global expertise to deliver a winning customer experience.”

In addition to launching Openbank in the U.S., Santander also announced it will be rolling out the digital bank to users in Mexico around the same time.

To promote the U.S. launch, Santander global ambassador and golfer Jon Rahm and his team will wear an Openbank logo on their shirts during all golf competitions, starting at the Masters in Geogria this weekend. “The golfer will help Santander and Openbank increase their visibility in North America, where Santander has a significant presence,” the bank explained.

Many non-U.S.-based digital banks have experienced difficulty launching in the U.S., citing the difficulty to obtain a banking license from the U.S. OCC. As Finovate Analyst David Penn wrote in a blog post yesterday, “…it has not been easy for financial institutions outside the U.S. to secure approval to operate within the U.S. For example, Monzo, a U.K.-based challenger bank, tried and walked away from the process in 2021 when approval seemed unlikely. Unfortunately, new U.S.-based firms looking for bank charters have only fared a little better. For every Savi Financial, there is a New Canaan Bank.” Openbank should not have the same issue, however, as the bank will likely rely on Santander’s banking license it received after buying out Sovereign Bank in 2008.

Photo courtesy Santander

• Quavo Fraud & Disputes has teamed up with Snowflake.
• The partnership between Quavo and Snowflake will allow Quavo to offer its clients access to more extensive datasets, helping them manage their fraud and disputes processes.
• Since it was founded in 2015, Quavo has helped recover nearly $660 million for 6+ million users

Disputes-as-a-Service company Quavo Fraud & Disputes announced that it has teamed up with data warehouse-as-a-service provider Snowflake this week.

“As Quavo has continued to push the limit of automation in the payment dispute management space, data security and flexibility have become increasingly important,” said Quavo Director of Strategic Partnerships Dana Reiner. “I am excited we have formalized our relationship with Snowflake, as they have proven to be a vital part of our analytics and innovation.”

Quavo will integrate Quavo Fraud & Disputes (QFD) with Snowflake’s platform. QFD is Quavo’s SaaS platform that helps issuing financial institutions resolve fraudulent and disputed transactions. Using the tool, banks can manage the entire flow of the disputes process. By partnering with Snowflake, Quavo will be able to offer its clients access to more extensive datasets, which will help them manage their fraud and disputes processes.

Quavo was founded in 2015 to help financial institutions deal with the rising cost of fraud and payment disputes. Since then, the company has helped recover nearly $660 million for 6+ million users who have suffered financial fraud, merchant issues, and identity theft. Quavo counts KeyBank, Galileo, Green Dot, and others among its clients.

Snowflake launched its data platform in 2012 to help businesses load, integrate, analyze, and share their data, securely and at scale. While the California-based company’s solutions span many different verticals, Snowflake’s financial services use cases include quantitative research and trading, personalized investment planning, financial crime prevention, insurance underwriting tools, and more.

Snowflake’s Head of Banking & Capital Markets James McGeehan made it clear that today’s partnership is just the start of the alliance between the two companies. “We look forward to further collaboration with Quavo in an effort to advance fraud resolution capabilities for financial institutions,” McGeehan said. “Our scalable cloud data platform combined with QFD will help to arm issuers with a robust data solution for the fight against fraud, and help customers to safeguard consumers’ financial well-being.”

Photo by Dominika Gregušová

• Busey Bank has selected CorServ to offer a new credit card program for its commercial clients.
• Busey Bank is giving up its Agent Bank program in favor of CorServ’s Account Issuer Program, in which Busey Bank will directly issue credit cards.
• CorServ has been offering card issuing services since it launched in 2009.

Illinois-based Busey Bank announced today it has selected card issuer CorServ to power a a modern credit card program for its commercial customers.

Busey Bank has switched from its Agent Bank program, in which a third party financial institution issued the cards, selecting CorServ’s Account Issuer Program, in which Busey Bank will directly issue credit cards to its customers through CorServ’s program. The bank anticipates the move will make its card solution more comprehensive and will improve the interchange, benefitting both the bank and its clients.

“Busey Bank uniquely knows the financial situation and banking needs of our commercial customers,” said Busey Bank EVP and Director of Treasury Management Andy Santangelo. “CorServ’s commercial card program provides us with tools for credit decisioning, options for local servicing, and custom rebates which empower Busey Bank to better serve our commercial customers compared to what National card issuers can offer.”

Busey Bank was founded in 1868 and serves retail and commercial customers across its 80 branch locations in Illinois, Missouri, Florida, and Indiana. In addition to its commercial card service offerings, the bank also offers commercial clients business planning and business online banking tools.

CorServ has been offering card issuing services since it launched in 2009. The fintech currently offers a turnkey credit card issuing service, a direct credit card issuing service, and a payment cards-as-a-service API. Leveraging CorServ’s Account Issuer Program, Busey Bank will offer its commercial customers better credit card products, a self-service card management interface, customizable reports that include including Level 2 and 3 transaction data, virtual cards, employee spend controls, and expense reporting.

CorServ has raised a total of $2.1 million, according to Crunchbase. Last month, the company was selected by Scale Bank to enhance its commercial lending. Additionally, a month earlier, Gorham Savings Bank announced plans to utilize CorServ’s technology to improve its commercial credit card program.

“CorServ’s program gives commercial customers a modern approach to banking with more capabilities for a convenient and simple experience,” said CorServ CEO Anil Goyal. “We are thrilled to partner with Busey Bank to contribute to their legacy of associate excellence, customer service, community involvement, and expanding shareholder value.”

Photo by Ketut Subiyanto

• Embedded banking software provider Treasury Prime partnered with digital banking solutions company Narmi.
• Banks in the Treasury Prime network will be able to offer their BaaS clients access to a real-time payment platform via Narmi’s FedNow service.
• Under the agreement, Narmi will act as the service provider for FedNow.

Embedded banking software provider Treasury Prime announced today it has partnered with digital banking solutions company Narmi. As a result of the agreement, Treasury Prime will be able to offer its banking customers the ability to send and receive money through FedNow.

Banks in the Treasury Prime network can offer their BaaS clients a real-time payments platform via Narmi’s FedNow service. Narmi supports all of the FedNow offerings, including the ability to receive funds, send money to linked and external accounts, and request for payment (RFP). By adding real time payment capabilities to their BaaS capabilities, banks can help their fintech clients remain competitive, drive engagement, and increase revenue streams.

“Narmi’s FedNow Service Provider capabilities combined with Treasury Prime’s embedded banking platform creates a unique and powerful offering,” said Treasury Prime Chief Platform Officer Mark Vermeersch. “We are excited to partner with Narmi to streamline the integration of FedNow for our financial institution customers, allowing them to stay at the forefront of real-time payments and fintech services.”

To keep things simple for banks, Narmi will act as the service provider for FedNow, handling complex tasks such as connecting directly to the Federal Reserve, posting transactions to the core banking system, and facilitating compliance and operational requirements.

Founded in 2017, Treasury Prime helps banks become partner banks by building an embedded banking platform. The San Francisco-based company helps its bank clients build and deploy a wide range of financial products, including business bank accounts, payment processing, and lending solutions, all integrated with their existing systems.

New York-based Narmi was founded in 2016 to offer banks the digital banking tools they need to increase profitability, deposits, and accounts. In addition to the company’s FedNow service, it also offers commercial and retail digital banking tools, digital account opening capabilities, analytics, and an administrative portal.

“Narmi and Treasury Prime share a common vision to better serve the needs of small to mid-sized financial institutions,” said Narmi Co-Founder Chris Griffin. “This partnership with Treasury Prime represents a significant leap forward for these banks, opening doors to new revenue streams and enabling them to meet the ever-increasing demand for real-time payment solutions in the modern financial landscape.”

Photo by Pixabay