Best bank: Banco Santander
While one of the smaller banking markets in Latin America, Uruguay has some excellent banks that generate some exceptionally strong financial results. Part of that success is due to a consistently strong economic backdrop – and in 2023 significantly higher interest rates also helped. However, individual management teams can also take a large part of the credit and this year Banco Santander’s chief executive Gustavo Trelles repeats his success of last year by retaining the award for Uruguay’s best bank.
During 2023 Santander delivered on its digital bank with branches strategy – essentially a mixed model but with the emphasis on converting clients to digital transactions. While the strategy is far from revolutionary, the execution has been flawless, and Santander saw its efficiency ratio fall to 39.4% in 2023 from 48.5% in 2022.
Santander increased its market share in loans and deposits by 110 basis points and 81bp respectively in 2023. The bank also pursued new business opportunities in existing segments, such as its car financing product Mi Auto, which it launched in 2023. The bank argues that this standalone platform mixes “one-of-a-kind” technology with a large network of brands, distributors and both proprietary and third-party marketplaces. Santander used Mi Auto to claim a 58% market share in auto financing by the end of 2023.
Santander also continued its push into the corporate and small and medium-sized enterprise segments, using its acquisition product, Getnet, to increase the share of wallet of banking services for this segment. Santander now has a 33% market share of the SME client base, a three percentage point lead over its rival Banco Itaú, in second place. The bank also enjoys a leading 26% market share for loans to larger corporate clients, with a total outstanding loan portfolio of $2.6 billion for this segment at the end of 2023, up 28.3% versus 2022.
Santander also launched an improved retail account called Soy Santander, which is designed to be fully digital, from onboarding through to cross selling. The account helped Santander to double its account opening rate and has gained an 80% net promoter score for its onboarding process. It has also helped accelerate deposit growth in 2023. Santander’s outsized exposure to the retail market also helped to generate outsized results, with the best return on equity in the system, at 28.4%.
Best digital bank: Banco Itaú Uruguay
Banco Itaú Uruguay became the first bank in Uruguay to facilitate money transfers using phone numbers from clients’ mobile contact books last year. The service offers the same security and privacy conditions as traditional transfers.
It also introduced its Itaú Link Empresa application, which is designed to streamline business operations, and an online preferential currency exchange rate, a service that was previously only available via phone.
The bank has prioritized efficiency through the implementation of robotic process automation across its operations. Bots have replaced manual processes, automating 713 hours across various areas.
Itaú made significant investments in data analytics, as well, doubling the number of people in the data analytics team.
Best bank for ESG: Banco Itaú Uruguay
Banco Itaú Uruguay worked on green project financings, carbon emission reduction efforts and initiatives last year.
It was involved in loans totalling $24.8 million to various green projects. These included the purchase of a hybrid fleet for a transport company, irrigation initiatives, the acquisition of ambulances, heat pump installation and residue collection.
The bank also improved its carbon emissions reduction efforts, achieving a total carbon offset of 531.17 tonnes.
It also supported various sustainability events, including a series of roundtables organized by the non-profit Sistema B. It played a key role in the launch of the Global Compact Network in Uruguay and became signatory of the UN Standards of Conduct for Business in relation to LGBTQI people. It was also instrumental in the creation of the Sustainable Finance Table, an initiative promoted by the central bank of Uruguay.
Best bank for corporate responsibility: Banco Santander
Banco Santander was active in supporting education in Uruguay last year.
Over 540 scholarships were awarded to Uruguayan students through the bank’s Iberoamerica programme. It also extended support to entrepreneurship centres at several universities across the country, benefitting more than 2,991 students.
Santander’s digital security campaign, #LaFormaCorrecta, is designed to educate both employees and customers about safe online practices.
The bank also focuses on providing financial education to organizations in critical situations. A team of bank volunteers conducted workshops on topics such as savings and credit, microenterprises, home planning and access to the job market. These workshops were held in educational centres attended by young people at risk of social exclusion, and directly impacted 592 participants.
Best bank for corporates: Banco Santander
Banco Santander issued approximately $1.6 billion in loans to corporate customers in 2023, a 35% year-on-year increase. It now has a 26% market share, up 2% from 2022.
The bank worked on deals for prominent firms in Uruguay’s economy, including the main supermarket chain, Grupo Disco, and the leading beef processing businesses. It also worked on a supplier credit deal for Conaprole, the largest dairy business in Uruguay.
The bank restructured its corporate business in 2023, dividing Uruguay into five regions to improve dedicated coverage.
The bank offered extra terms and credit to agricultural producers and helped them refinance their loans during one of Uruguay’s worst droughts in recent years. The bank was also a key supporter of government’s initiatives to aid the sector.
