4 min read January 2024 — In an interview with Invest:, Mark Schrieber, managing director and head of Mid-Atlantic middle market banking at Santander Bank N.A., said the institution brings a local presence and international connectivity to provide one-of-a-kind services to clients. “It positions us as a trusted adviser for clients who need comprehensive, integrated solutions,” he said.
What milestones would you highlight from the past year?
In 2023, we unified our Commercial Banking and Real Estate & Vehicle Finance teams into one Commercial Bank in the U.S., creating in-market scale, resources and reach to efficiently serve our clients in the United States and abroad. Our coverage teams are deeply embedded in the market and can support the full spectrum of commercial banking client needs from the middle market up to what we call mid-corporate, clients who generate up to $5 million of top-line revenue. As part of a leading global bank, we are able to leverage the breadth and scale of our international markets in both Europe and Latin America to provide unparalleled capabilities and banking solutions to our clients in the U.S. — a key differentiator for Santander Bank. Having global operations in multiple geographies positions us as a trusted adviser for clients who need comprehensive, integrated solutions.
This past year we were also keenly focused on payment solutions to help our clients efficiently manage working capital through advanced “pay-in” or “pay-out” capabilities that leverage our technology capabilities and keep clients safe in the process. Additionally, we focused on differentiated working capital solutions that leverage our global diversity and scale.
What else sets Santander Bank apart from competitors in the Philadelphia market?
We have a client-centric relationship model, including our white glove approach to client services, with an emphasis on personal touch, from being local to providing complex solutions to multinational businesses that need access to our international network.
We are also accelerating our product development to provide liquid and safe solutions to help our clients manage counterparty risks, which is becoming increasingly important. And we are developing innovative solutions that resonate within the professional services community given our relative strength and geographic diversity.
What are the key challenges facing the banking industry right now?
A lot of the issues stem from interest rates and its impact on businesses and the consumer. There is a question of when interest rates will take a toll on businesses and how that will impact future revenue growth, especially as businesses begin to pull back on spending to preserve capital. There are different views on what the Federal Reserve will do, and when they will lower rates as they continue down the path to their long-term inflation target of 2%. We also need to take into account how unemployment will impact various markets.
The commercial real estate market is also a concern across the banking industry. Occupancy levels today versus pre-pandemic impacts refinancing. People don’t go into the office like they used to, so professional service companies based in cities like Philadelphia are feeling the effects. A lot of companies are pivoting to support the needs of their employees, but that’s changing as the economy softens a bit.
At Santander Bank, we’re helping our clients through these challenges by being nimble and proximate to our clients. As a flat organization, senior management is active in the market and meeting with clients to understand their objectives, priorities and how we can deepen those relationships. Furthermore, we’re leveraging our relative strength to provide a safe and secure home for deposits and other forms of liquidity, while developing industry sector expertise in high growth, technology, electronic and merchant wholesalers and professional services — and delivering those capabilities in the local markets.
How is technology impacting the way Santander Bank does business?
Like many industries, our clients’ preferences and behaviors have changed, with more clients choosing to bank with us online. Therefore, we are reimagining the client and employee experience by simplifying our processes, refining our branch footprint across the Northeast from New England to the Mid-Atlantic, and increasing our investment in digital capabilities to align with the evolving needs of our clients.
Five years of digital transformation advanced in a matter of months during the pandemic when businesses realized they needed to be resilient and have the tools in place to work remotely when they had to. We want to provide advanced capabilities to our clients to get paid faster and optimize payments to efficiently manage working capital. We want our platforms to transform businesses while keeping them financially safe as well, making it easier for them to transact with us and others. The advantage of technology is being able to open more accounts faster and more efficiently.
How has Santander Bank impacted the Philadelphia community through service and engagement?
We are deeply committed to the market and embedded in our communities. Throughout Santander’s Commercial Bank, we are volunteering, sitting on boards, participating in community-oriented events and more.
In 2022, Santander provided over $1.2 million in grants to 44 Philadelphia regional community organizations supporting affordable housing, financial education, workforce development, small business development and community services. Employees volunteered over 1,200 hours, with a specific focus on financial literacy, workforce development, small business support and youth programming, and 3,000 members of the Philadelphia community were served through our local volunteer initiatives.
In 2023, we logged over 60,000 hours of service throughout the U.S., with nearly 50% of employees participating in the program – each the highest totals in Santander US’s history. We’re actively engaged, and it is a point of pride that we are committed to making the communities we work and live better.
What is your outlook for the banking sector in Philadelphia, economic landscape of the region, and for Santander Bank over the next few years?
The Greater Philadelphia Region benefits from diverse and stable industries with a heavy concentration of education and health care institutions that underpin the local economy. Although Philadelphia faces issues experienced by other large cities across the country, we know that education and access to college go a long way to reducing poverty. There are 130 secondary schools in the Greater Philadelphia market, which produces one of the largest talent pools in the nation. The challenge is retaining this talent and for companies to be aware of this talent.
As a world class destination for business, regional “business attraction efforts” are at an all-time high for the Greater Philadelphia region which provides a buffer for economic growth and prosperity. We are a cell and gene therapy hub with a heavy concentration of life sciences businesses that attract active venture capital investors. Philadelphia is also one of seven regional hydrogen hubs, which should drive incremental investment and jobs that are aligned with clean manufacturing and clean energy production. Santander is a leader in sustainable investing, and we’ve been active across our footprint supporting similar initiatives for renewable energy.
I’m cautiously optimistic for 2024. Our clients are well-positioned as we head into a new year; they’ve navigated supply chain challenges, labor shortages and persistent inflation and have emerged stronger for it. Over the next 18-24 months, Santander’s Commercial Bank will deepen these client relationships and drive new ones across markets and geographies. Leveraging our international network, its resources and scale, and our tech investments will enable us to serve more clients in the U.S. and in our international markets.
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