UK exit rumours, regulatory tensions and market instability; a short-lived rumour about
Santander’s future on the UK high street emerged recently. Despite a rebuttal from its executive chair Ana Botín, the saga revealed a bubbling weakness under the surface of retail banking.
Here’s everything you need to know.
Santander UK performance
The story began a week ago, when
The Financial Times reported that due to lower than expected profits and overall struggles with performance in the UK, internal conversations pointed to the possibility of their exit.
Naturally, this sent the industry into somewhat of a furore. Santander is a key player in the traditional banking industry and losing its presence in the UK landscape would be a loss echoing in its impact.
Santander rumours, dispelled
However, the story and its authority did not last long. Botín made her thoughts clear: Santander is not leaving.
According to Botín, while speaking at the World Economic Forum, “We love the UK. It’s a core market and will remain a core market for Santander.”
When it came to explaining the source of these rumours, Botín had strong words: "You know the army of investment bankers that wants to get fees? So if they start, these kind of people start looking at M&A, they start looking around. It’s definitely not coming
from us.”
What is the impact of this news on the industry?
This clash of titans in the finance industry and the ability to see a rumour spread amongst publications of authority exposes a growing frustration.
As regulatory demands increase and a growing market of neobanks loom over the traditional industry, collaboration creates opportunity but competition still remains. Rumours like this one reveal a level of tension that continues to grow alongside the benefits
of progress.
This is perhaps demonstrated further by the recent
resignation of the chairman of Santander UK William Vereker, the timing of which cannot be ignored.
While this only adds more fuel to the fire of what the bank's UK presence may have in store for its future, they are keeping a positive tone.
In an interview with
The Times, Vereker dispelled yet more rumours, this time about a rift between Vereker and Botín: “There is no substance to any suggestion of a rift between myself and Ana Botín. This is the right time to step down.”
With the cloud of a controversial lawsuit overhead, mumbles and rumours about their future and now the resignation of its UK chair, the speculation and rumours about Santander show no signs of slowing down anytime soon.
As such, we are left with a simmering question over whether there is any truth to parts of these rumours and, if so, what it means for the larger landscape.