The The battle over the bank tax has also moved to Washington these days. While on Wednesday the Minister of Economy, Carlos Body, confirmed at the assembly of the International Monetary Fund (IMF) his will to make it permanent, This Thursday it was the president of Banco Santander, Ana Botín, who responded. The also temporary president of the International Institute of Finance (IIF) participated in the forum of this banking association and contrasted the facilities provided by the American regulatory environment with the European one, suggesting that profits are demonized in Europe and expressly citing the banking tax. : “Companies should be allowed to make money,” he said. At the same time, he defended the attractions of Spain as an investment destination and also pointed out his ambition to grow in the United States, where he recently launched Openbank. Botín told how she herself attracts clients wherever she goes: the last one, that of a 23-year-old Argentine waiter in Florida. “It’s my job,” he said.
Botín won over the forum attendees with these and other anecdotes, but he also delivered some very serious messages: “We need governments to understand that if you want to pay for the European model, we need companies to be allowed to make money. This is what we have said publicly. Why should we have a bank tax on income like in Spain? That goes directly against growth, and it is not going to help our common objective of helping people do better,” said the president of Santander, in the presence of the president of the Spanish Banking Association (AEB), Alejandra Kindelán. “I think this is the difference with the United States. You are allowed to make money and profits are what make the economy work. “There is a cultural aspect that is really important,” he added.
“What we are saying is that we need a balance between keeping banks safe and financing growth,” he said, also alluding to other regulatory aspects, such as capital requirements. “If we want to channel the capital of our savers into companies that invest to grow and generate profits and pay taxes and pay for services and education, we have to be more predictable to obtain the capital we need as a financial sector to continue growing,” he argued. “During Covid, banks were part of the solution. “We want to continue being part of that solution, and right now, I think we could do more, and I think that would actually make the system more secure,” he insisted.
Botín criticized how European fragmentation hinders growth and causes many entrepreneurs to end up going to the United States. “They come here, they set up the company here, and they pay taxes here, and that is why this country grows more, because there is still that appetite and an acceptance that it is good for companies to be profitable,” he explained before insisting that Spain is also a profitable investment destination.
“Spain is a great place, and not just to come on vacation guys, but to establish a company, okay? We hope to make it much friendlier so they actually stay. We have great infrastructure, with most of the territory covered by high speed. We have a great healthcare system that is apparently one of the best in the world. We have great engineers. The quality of life is good. So there are many opportunities beyond coming on vacation. Of course, we invite you to come on vacation too, but maybe stay a little longer and, for example, discover smaller cities, like where Santander was founded, on the north coast,” he said.
The president of Santander also spoke about the recent entry of Openbank into the United States. For now we have a high-paying savings account, but by the end of 2025 we will have a full-service digital bank across the United States, which we think is going to be different. I’m not going to steal too many clients from JP Morgan, I know Jamie (Dimon, JPMorgan chairman) is coming here now. But I’m hoping to take some off him and we have a great credit rating, not far off from our friend we’re going to see soon, although I’m sure we’re not going to put a hole in him. But we like to build competition, which is good. “We are competitors and friends and also clients,” he said. Dimon spoke directly afterwards at the forum, which is held in parallel with the IMF meetings. When Botín finished, they both crossed paths and talked for a few minutes.
“My feeling in the United States, not so much in Europe, is that many companies are waiting to see what happens with the elections (presidential and legislative on November 5). I think there will be a certain rebound in investment after the elections. “Of course, it could be different between sectors and depending on what the outcome is, but what we are seeing, and we are the fifth largest auto financier in the United States, is that there is some pent-up demand,” he also noted.
Botín also spoke about the importance he gives to technology, how the bank’s digital platform changed and insists on continuing to improve it. “One of the problems we have is that we are super successful. So with triple the profits in three years, we will be close to 13,000 million in net profit, revenues are rising 10% and the cost is flat and so on, so people do not have the urgency to change,” said.
Regarding the global situation, he noted that he is especially concerned about geopolitical risks, but that the good news is that it seems that a soft landing is being achieved and the situation is much better than expected two years ago.
According to the president of Santander, “many of the fintechs are going to want to become banks.” “What I tell everyone here is that we are already banks. “We know how to handle regulatory and supervisory things.” But he also praised how many of these new firms have known how to put themselves in customers’ shoes and meet their needs. “We think that ‘buy now, pay later’ is the same as a consumer credit product. It’s not because if you think like the consumer, they see it in a different way. It is a different experience.”
And he insisted on his commercial vocation to attract clients wherever he goes. “Absolutely, I do that, of course. That’s my job, guys.” And he told another anecdote: “Like my colleagues in the UK, I used to go to see the regulator, the PRA, like every week, so the receptionist ended up being my client. It took me three years,” he said, causing laughter from those present.
