Banco Santander creates a company with Telecom Italia to offer consumer credit
Santander Consumer Finance, through its unit in Italy Santander Consumer Bank has signed a joint venture with Telecom Italia (TIM) to create a half-size partnership in the consumer credit business for the operator's customers in Italy, as confirmed in a statement.
The new company will be owned 51% by Santander and 49% by Telecom Italia and will provide installment financing for mobile phone products and services. It will finance the acquisition of devices itself or also the contracting of insurance.
The CEO of Telecom Italia, Luigi Gubitosi, has ensured that this agreement will allow them to release capital and reduce credit risk, while at the same time supporting their sales and expanding the income base.
"Santander is the right partner because of its strong track record in terms of successful alliances in Europe and its experience in consumer finance," said Gubitosi.
On his side, the CEO of Banco Santander, José Antonio Álvarez, has indicated that the agreement will allow his financier to become "leader in consumer finance in an attractive market, with the accompaniment of one of the most trusted brands in the country ".
Santander Consumer Finance is present in 15 European countries and has 20 million customers, while Telecom Italia operates, in addition to the Italian market, in Brazil, and has advanced ultra-fast broadband infrastructure and advances in the deployment of the new 5G mobile technology.