Grupo Santander is bringing together its private banking and asset management businesses to create a new wealth management division in a push to grow.
The firm is seeking to continue integrating its asset management business, which it repurchased last year from private equity groups, into its private banking operations to leverage its capabilities, according to a Wednesday statement from Santander announcing the move.
The group is hoping the new structure will help grow its assets by double digits annually over the next three years, while also building on its competitive advantage in 10 major markets, including Mexico, Chile, Brazil and Argentina.
Santander Private Banking runs €160 billion euros ($187.7 billion) in customer assets, some of which are managed within the €180 billion ($211.2 billion) asset management arm, according to the statement.
Santander’s new wealth management division will be made up of the group's asset management and international private banking businesses, along with a new private banking unit Santander plans to create. No details were available at the time of publication about this new unit.
The Spanish bank has appointed Víctor Matarranz (pictured), until now head of corporate strategy, to lead the new wealth management division. Enrique Álvarez, former deputy director of the unit, will take over Matarranz’s job, according to the statement.
Matarranz will report to Santander’s CEO, José Antonio Álvarez, who will in turn report to the group’s executive chairman, Ana Botín. Meanwhile, the private banking and asset management teams in each country where Santander has a presence will report to their local country heads and to Matarranz.
Under Matarranz, the new wealth management division will aim to create a new service model for its existing 170,000 clients, as well as offer a new digital platform for users to manage their financial needs, though no further details were available on these plans.
Botín said Santander as a group is seeking to accelerate its digital transformation to serve its 131 million customers, according to the statement.
‘The new global wealth management division will play a key role in this transformation in a very important segment for us in all our geographies that requires a combination of global and local service,’ she said.