Santander to add 1m current accounts to UK market

Santander has outlined plans to add one million new current accounts to the UK's domestic banking market this year, officials have revealed.

The bank, which has taken over flagging UK firms including Abbey National and Bradford and Bingley, is marketing itself as a "safe haven" immune from the woes of the credit crunch and a more stable option that the British banks that have relied on government bailouts.

Antonio Horta-Osorio, Santander's top UK executive, made the current account announcement earlier this month.

The bank also revealed it will change the name of Abbey National and Bradford and Bingley to Santander to speed up the integration of the unit.

Ads have now started to screen on British television to make those who hold current accounts with the banks aware of the change.

The merged group now holds the fifth largest amount of current accounts in the UK with 7.5 million holders of this type of financial product at the end of 2008, having added 257,000 new clients in the first four months of the year.

Mr Horta-Osorio said: "We know from speaking to our customers that they value and appreciate the strength and financial security that being part of a world-class global bank offers particularly in the new global banking environment."

He added: "Our prudent approach and focus on branch-based banking enabled us to acquire the Alliance & Leicester and Bradford and Bingley savings business in 2008, despite unprecedented market turmoil."

Rebranding of the Abbey National and Bradford and Bingley branches to Santander will take effect in quarter one of 2010.

Alliance & Leicester will be rebranded by end of 2010, after which any customer of Abbey, Alliance & Leicester or Bradford and Bingley savings will be able to make transactions in any of Santander’s UK branches.

While Satander presses ahead with its expansion plans, Canada recorded a record current account deficit in quarter one of 2009, it has been revealed.

Statistics Canada said the deficit was largest on record since 1946, although was smaller than figures predicted by some economists.

Charmaine Buskas, economics strategist, at TD Securities, said the Canadian current account market was unlikely to "change significantly in the near term".

"This is categorically a weak report and highlights the damage that the deteriorating trade environment has had on the Canadian accounts,'' concluded Ms Buskas.

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