Banco Santander-Chile (BSAC): Business Model Canvas [Dec-2025 Updated]

You're looking for the real story behind the Chilean bank that's consistently posting top-tier results, and honestly, the numbers from late 2025 tell a clear story of digital execution meeting solid balance sheet strength. Forget the fluff; this institution is running lean with an operational efficiency of 35.9% while delivering a scorching Return on Average Equity of 24.0% as of the third quarter. We've broken down exactly how they manage a massive loan book of Ch$40.9 trillion and serve nearly 2.3 million digital clients, all while maintaining a strong capital buffer with a CET1 ratio of 10.8%. Dive into the Business Model Canvas below to see the specific partnerships and activities driving this performance.

Banco Santander-Chile (BSAC) - Canvas Business Model: Key Partnerships

Parent company Banco Santander Group for global technology and capital

• The bank completed the migration of its legacy mainframe service to the cloud, operating fully on cloud infrastructure since Q1 2025.
• As of June 30, 2025, Banco Santander Chile reported total assets of $\mathbf{US\$69.4}$ billion (or $\mathbf{Ch\$66,188,442}$ million).
• The BIS capital ratio stood at $\mathbf{17.0\%}$ as of June 30, 2025.
• Total gross loans (including those owed by banks) at amortized cost were $\mathbf{Ch\$40,942,542}$ million ($\mathbf{US\$42,911}$ million) as of June 30, 2025.

LATAM Airlines Group for the renewed LATAM Pass loyalty program

The strategic alliance with LATAM Airlines Group was renewed for another five years, consolidating over three decades of collaboration.

PagoNxt (Group's payments platform) to strengthen Getnet Chile

Santander Chile proposed incorporating PagoNxt as a strategic partner for Getnet Chile, subject to approval at the Extraordinary Shareholders' Meeting on December 10.

Servipag for expanded payment and service facilities

• No specific 2025 financial or statistical data on the Servipag partnership was made publicly available in the latest reports.

Strategic alliances with large corporate clients for syndicated loans

• Loan growth for 2025 is expected in the low single digits.
• Net interest margin improved to $\mathbf{4.1\%}$ in Q2 2025.
• Net income for the first half of 2025 was $\mathbf{\$550}$ billion.

Banco Santander-Chile (BSAC) - Canvas Business Model: Key Activities

You're looking at the core engine driving Banco Santander-Chile's operations right now. These aren't just tasks; they are the specific, high-value actions that keep the money flowing and the digital future arriving.

Core lending and deposit-taking operations

The foundation remains the classic banking activity: taking deposits and deploying that capital as loans. This is where the primary revenue generation happens. As of the first half of 2025, the bank achieved a net income attributable to shareholders of $798 billion for the nine months ending September 30, 2025. The net interest income (NII) for the six months ended June 30, 2025, increased 26.0% year-over-year.

The funding side is robust. Total deposits as of June 30, 2025, stood at Ch$29,614,613 million (US$31,039 million). This deposit base supports the lending book, which is the asset side of the balance sheet.

Managing a loan portfolio of approximately Ch$40.9 trillion (as of June 2025)

Managing the loan book is a critical risk and return activity. You asked about the Ch$40.9 trillion mark, and the actual figures confirm this scale. As of June 30, 2025, total gross loans (including interbank) at amortized cost were Ch$40,942,542 million. By the latest reported date, September 30, 2025, this figure grew slightly to Ch$40,988,278 million (US$44,002 million). The bank is actively managing asset quality; the non-performing loan coverage ratio for the portfolio reached 126.0% in June 2025.

Here's a quick look at the key financial metrics supporting this activity as of mid-2025:

Digital transformation, including the Gravity core system migration to cloud

The bank is executing a massive technological overhaul, central to its long-term efficiency. The Gravity platform is the in-house, cloud-native core banking technology. The consumer business in Chile was successfully migrated to the Google Cloud-based Gravity platform without any service interruption. This transformation is part of the broader One Transformation plan aiming for a common operating model.

The scale of this digital shift is significant:

• More than 90% of IT has already been migrated to the cloud.
• The Gravity platform is set to process over 250 billion transactions annually.
• It supports 38,000 transactions per second with no interruption.
• Energy consumption for IT infrastructure has been reduced by 70%.

This move enables delivering new capabilities in hours, not weeks, which definitely speeds up customer value delivery.

Operating the acquiring business via Getnet Chile

Operating the acquiring business through Getnet Chile is a key growth vector, directly competing in the payments space. As of late 2025, Getnet Chile has captured an impressive 18.9% market share in physical card transactions. This is supported by an operational network of over 316,000 POS nationwide.

The business is scaling rapidly. By February 2025, it already had almost 200,000 associated businesses. Management projects that after three years, Getnet Chile could achieve a market share of approximately 15%, implying additional annual revenues of almost US$19 million.

Restructuring physical branches into the modern Work/Café format

The physical footprint is being actively reshaped away from traditional transaction centers. As of June 30, 2025, Banco Santander-Chile operated 231 branches throughout Chile. The Work/Café format, which blends banking services with coworking and café spaces, is central to this strategy. The model started in Chile in 2016.

The shift involves closing less productive locations to focus on the Work/Café model. The bank is creating multi-use banking spaces to foster customer engagement.

Finance: draft 13-week cash view by Friday.

Banco Santander-Chile (BSAC) - Canvas Business Model: Key Resources

You're looking at the core assets that make Banco Santander-Chile a dominant player in the Chilean financial landscape. These aren't just line items on a balance sheet; they are the tangible and intangible foundations supporting every transaction and strategic move. Honestly, having this kind of bedrock is what allows the management team to focus on growth rather than survival.

Strong Capital Base

Capital strength is non-negotiable in banking, and Banco Santander-Chile maintains a position that regulators and counterparties respect. As of the end of September 2025, the bank reported a CET1 ratio of 10.8%. That Common Equity Tier 1 (CET1) ratio-your highest quality capital-is well above minimum requirements, giving you a significant buffer. To put that in context, the overall Basel III capital ratio stood at 16.7% as of that same date. This solid capital structure, built on consistent profitability, is a key resource for weathering economic shifts.

Extensive Physical Network

While digital adoption is soaring, the physical footprint remains a vital resource for comprehensive national coverage and certain customer segments. As of September 30, 2025, Banco Santander-Chile operated 231 branches throughout Chile. This network provides essential physical access points across all major regions, complementing the digital channels. I couldn't pin down the exact, current ATM count, but the branch number itself speaks to a deep, established distribution capability.

Advanced Digital Platforms and IT Infrastructure

The bank has clearly prioritized technology as a core asset, moving beyond simple online banking to a modern, scalable infrastructure. A major milestone here was the completion of the 'Gravity' project, which involved migrating from the Mainframe to the Cloud during the first quarter of 2025. This move to a cloud-native global platform is a direct investment in future agility and efficiency. You can see the payoff in their efficiency ratio, which hit 35.9% in 9M25.

Here's a quick look at some of the key operational metrics supporting this resource base:

Large Customer Base

Scale matters, and Banco Santander-Chile commands a significant share of the Chilean market. As of the second quarter of 2025, the total customer base stood at approximately 4.5 million clients. That figure represented an 11.5% year-over-year growth in total customers. Furthermore, the digital segment is massive, with 2.3 million digital customers, which is about 87% of their active customer base at that time. That's a huge base to cross-sell services to; it's defintely a powerful asset.

Global Brand and Financial Backing of Grupo Santander

Being a subsidiary of the global Santander Group provides an intangible but critical resource: brand recognition and implicit financial support. The parent group is a major international player, boasting 178 million customers globally as of September 2025. This global scale translates into access to international best practices, technology sharing-like the cloud migration we just discussed-and the reassurance of a massive, well-rated international entity backing local operations. The group's presence in 10 core markets in Europe and the Americas lends significant credibility in Chile.

You should keep an eye on the group's overall risk ratings, which are consistently high, such as the A2 rating from Moody's for Banco Santander-Chile itself.

• Global Customer Base (Grupo Santander): 178 million
• Global Employees (Grupo Santander): 201,304
• Global Branch Network (Grupo Santander): Over 8,000

Finance: draft 13-week cash view by Friday.

Banco Santander-Chile (BSAC) - Canvas Business Model: Value Propositions

Best-in-class operational efficiency of 35.9% (9M25)

Banco Santander-Chile delivers operational excellence, evidenced by its efficiency ratio reaching 35.9% as of September 30, 2025, for the nine-month period. This figure represents an improvement from the 40.0% recorded in the same period last year. This efficiency supports strong profitability metrics.

High profitability with a Return on Average Equity (ROAE) of 24.0% (9M25)

The high profitability is a core value proposition, with the ROAE for the nine months ending September 30, 2025, standing at 24.0%. This compares favorably to the ROAE of 18.2% reported in 9M24. The bank's net income attributable to shareholders for 9M25 was $798 billion.

Digital financial inclusion products like Cuenta Más Lucas

Banco Santander-Chile promotes financial inclusion through digital offerings. The combined stock of the Cuenta Más Lucas and Más Lucas Joven accounts reached 351,000 accounts as of the first quarter of 2025. The 'Más Lucas' account is positioned as the first mass digital onboarding vista account in the market, offering cost zero with no maintenance or transaction fees, and it generates interest on balances. For the 'Más Lucas Joven' product, the daily limit for national and international purchases with the associated Debit Card is set at $500,000 CLP, and the monthly maintenance commission is $0 until December 31, 2025.

The digital customer base is significant, representing 2.3 million of the total 4.6 million customers as of September 30, 2025.

Comprehensive corporate and investment banking (Santander CIB)

The offering includes a comprehensive Corporate and Investment Banking segment, as evidenced by the release of the 9M'25 Corporate & Investment Banking performance data.

Integrated loyalty and travel benefits through LATAM Pass

The value proposition includes a deeply integrated loyalty offering via the renewed strategic alliance with LATAM Airlines Group. This partnership enables the redemption of approximately 2 million airline tickets annually on average through accumulated miles. The Santander LATAM Pass alliance currently serves more than 688,000 customers in Chile. The alliance was renewed in August 2025 for another five years, continuing a collaboration of over three decades.

• Redemption volume: Approximately 2 million tickets per year.
• Alliance customer base in Chile: Over 688,000 clients.
• Alliance duration: Renewed for five more years in 2025.

Banco Santander-Chile (BSAC) - Canvas Business Model: Customer Relationships

You're looking at how Banco Santander-Chile maintains its grip on its customer base in a rapidly digitizing market. Honestly, their approach is a clear blend of high-tech efficiency and targeted human interaction, which is key to their strong profitability metrics, like the 24.0% Return on Average Equity (ROAE) reported through September 2025.

The core of their relationship strategy rests on a dual-track system. For the mass market, it's all about digital self-service and making transactions feel invisible. For the high-value segments, they lean into personalized, high-touch service. This balance is what keeps their efficiency ratio industry-leading, hitting 35.3% by mid-2025.

Digital self-service and seamless transactional volumes

Banco Santander-Chile is definitely pushing hard to be the national digital bank with branches. As of Q2 2025, they served around 4.5 million total customers, but the digital penetration is where the story is. You have 2.3 million digital customers, which means 87% of their active client base is operating digitally. That digital growth was up 7.9% year-over-year as of Q2 2025. This digital focus directly fuels revenue; net commissions grew 8.0% in the first nine months of 2025, and the recurrence ratio-how much of the bank's core expenses are covered by these commissions-hit 62.1% by September 2025. They hold a strong market share in checking accounts at 22.1% as of August 2025.

Here are the key customer metrics as of mid-to-late 2025:

High-touch, personalized service for Corporate and Private Banking

While the mass market goes digital, the Corporate and Private Banking segments rely on the opposite. These clients expect dedicated, high-touch service, which translates into relationship managers who understand complex treasury management or investment needs. This segment is crucial for fee income stability, which is why the bank focuses on maintaining high-quality, tailored interactions rather than pure volume here. The overall strategy supports a robust capital position, with the Common Equity Tier 1 (CET1) ratio at a solid 10.8% as of September 2025. This financial strength underpins the ability to offer bespoke services.

Dedicated relationship managers for SME and commercial clients

For Small and Medium Enterprises (SMEs), Banco Santander-Chile uses a dedicated relationship manager approach, often integrated with their payment solutions like YESNET. This focus on SMEs is structural; about one-third of their total loan book is concentrated in SME lending. The strategy is clearly working to bring in new business accounts, which grew by 25% year-over-year in the twelve months leading up to the Q2 2025 report. Furthermore, their YESNET POS client base grew by 21% annually, exceeding 212,000 merchants, which serves as a pipeline for cross-selling other banking products to these commercial clients. This personalized commercial outreach is a key differentiator from purely digital-only competitors.

Hybrid service model through the Work/Café branches

The Work/Café model is the physical manifestation of their hybrid strategy, blending transactional banking with community and co-working space. While the bank was closing less productive locations to focus on this model, by the end of 2024, they had 99 Work/Cafés in Chile. They've also innovated with formats like Work/Café Expresso, which achieved a Net Promoter Score (NPS) of 90, focusing on secure, quick teller services alongside the café environment. The transformation of the branch network to these formats is explicitly mentioned as an expense driver in 9M25, showing ongoing investment in this customer experience touchpoint. They also launched Work/Café StartUp to bank these ventures directly.

Loyalty programs to drive engagement and product usage

Loyalty is a major retention tool, and the renewed five-year alliance with LATAM Airlines in August 2025 highlights this focus. The Santander LATAM Pass alliance serves more than 688,000 customers in Chile as of June 2025. This program is significant because it drives product usage; approximately 2 million airline tickets are redeemed annually through miles accumulated via Santander Chile's banking products. This partnership is considered the bank's most valuable loyalty program, cementing relationships through tangible travel rewards. If onboarding takes 14+ days, churn risk rises, so these immediate-value programs are defintely important.

Finance: draft 13-week cash view by Friday.

Banco Santander-Chile (BSAC) - Canvas Business Model: Channels

You're looking at how Banco Santander-Chile gets its products and services into the hands of its clients as of late 2025. It's a mix of old-school presence and heavy digital push, which is defintely the trend across the industry.

Physical Branch Network

Banco Santander-Chile still maintains a physical footprint across the country. As of the third quarter of 2025, specifically June 30, 2025, the bank operated 231 branches throughout Chile. The bank is actively managing this network, looking for efficiencies by closing some traditional locations while remodeling others to ensure a more efficient use of space. This physical network supports the bank's overall strategy of being a 'Digital Bank with Branches.'

Digital Channels and Customer Reach

The digital side is where a lot of the growth is happening. By the second quarter of 2025 (Q2 2025), Banco Santander-Chile had approximately 4.5 million total customers, an 11.5% year-over-year increase. Of that total, 2.3 million customers were classified as digital customers as of Q2 2025. This digital engagement is translating to revenue, as the recurrence ratio-which is the portion of expenses funded by net commissions-hit 62% year-to-date as of September 2025, up from 58.3% in June 2024.

The primary digital touchpoints include:

• Mobile app access for daily banking.
• The main website for information and services.
• Online banking platforms for account management.

Here's a quick look at some key channel metrics as reported around the middle to late part of 2025:

Merchant Services via Getnet

For merchant services, Banco Santander-Chile uses its acquiring network, Getnet Chile. This channel is focused on point-of-sale (POS) solutions. As of late 2025, Getnet Chile was operating over 316,000 POS terminals nationwide. This scale has allowed Getnet Chile to capture an 18.9% market share in physical card transactions within four years of operation. The network supports features like same-day fund availability in Santander accounts, even on weekends.

Third-Party Service Points

To extend reach beyond its own walls and ATMs, Banco Santander-Chile has established key partnerships. For instance, the bank signed a major agreement with Servipag to allow customers to carry out a range of transactions through Servipag's branch network, offering more service facilities and longer hours. The bank also relies on its network of ATMs nationwide to support transactions.

Dedicated Sales Force for Loans

Direct sales efforts remain important, particularly for credit products. For example, in the Consumer Loan space, the bank offers terms up to 60 monthly installments for amounts like a liquid credit of $10,000,000 CLP, with an example Annual Equivalent Charge (CAE) of 17.38%. Furthermore, the structure supporting this is clear, with Santander Consumer Finance Ltda. y Afiliada being 51.00% owned by Banco Santander Chile S.A.

Banco Santander-Chile (BSAC) - Canvas Business Model: Customer Segments

The customer segments for Banco Santander-Chile are structured across the full spectrum of the Chilean economy, from mass-market individuals to major institutions.

The total customer base for Banco Santander-Chile reached around 4.5 million by Q2 2025. The bank also reports serving more than 4 million clients in total, positioning it as a market leader in penetration.

The segmentation is clearly defined across the following groups:

• Retail/Mass Market individuals (Banca Personas): This segment serves clients across mass market and upper-middle-income brackets.
• Small and Medium-sized Enterprises (SMEs) (Banca Pymes): This group focuses on providing financing, credit, insurance, and investment services to small and medium-sized businesses.
• Large Corporate and Institutional Clients (Santander CIB): This division handles complex financial solutions for large corporations and institutions.
• Digital-only customers: A rapidly growing segment driven by digital transformation efforts.
• Vehicle financing customers (Santander Consumer): Offers flexible financial solutions specifically for vehicle purchases.

Here is a breakdown of the latest available quantitative data points for these segments:

The digital focus is a key driver, with the bank reporting that 34% of its branches operate without human tellers as of Q1 2025, supporting the digital client onboarding.

The bank's overall operational strength, which supports all segments, included a net income of CLP 798 billion and total assets of 68.24 billion pesos by September 2025. For the first nine months of 2025, the attributable profit was €10,337 million.

Finance: draft 13-week cash view by Friday.

Banco Santander-Chile (BSAC) - Canvas Business Model: Cost Structure

The Cost Structure for Banco Santander-Chile is heavily influenced by technology modernization, personnel management, physical network adjustments, and managing the cost of funds and credit quality.

Significant technology and digital investment expenses were noted, particularly in the first quarter of 2025, related to the completion of the Gravity project, which involved migration from the Mainframe to the Cloud. This resulted in higher transitional technology expenses.

The bank's workforce size as of June 30, 2025, was confirmed at 8,660 people. Personnel expenses saw a decrease in the third quarter of 2025, partly due to seasonality related to winter and national holidays in September.

Costs related to the branch network restructuring and Work/Café transformation were a driver in the increase of total operating expenses in the first nine months of 2025 (9M25). Overall, total operating expenses increased 3.1% in 9M25 compared to 9M24.

Funding costs for deposits and wholesale financing have trended downward, which positively impacted the Net Interest Margin (NIM). The funding cost fell from 5.0% to 3.9% in the six months ended June 30, 2025 (6M25), and from 4.8% to 3.8% in the nine months ended September 30, 2025 (9M25).

Regarding provisions for loan losses, the cost of risk year-to-date (as of Q3 2025) was showing closer to 1.4%. The bank anticipates the cost of risk will improve to 1.35% by year-end 2025.

Here's a quick look at key cost and efficiency metrics as of late 2025 reporting periods:

The recurrence ratio, which measures how much structural support expenses are financed by fee generation, reached 62.1% as of September 30, 2025.

• Technology expenses were higher in 1Q25 due to the Gravity cloud migration.
• Operating expenses decreased 1.7% in 3M25 compared to 3M24, driven by lower other operating expenses from branch restructuring in that specific quarter.
• The efficiency ratio was 35.3% as of June 30, 2025.
• The efficiency ratio was 35.0% as of March 31, 2025.

Finance: draft 13-week cash view by Friday.

Banco Santander-Chile (BSAC) - Canvas Business Model: Revenue Streams

You're looking at the core ways Banco Santander-Chile converts its activities into cash as of late 2025. Honestly, the story here is strong core banking performance, especially from lending, supported by growing fee-based services.

The primary engine remains the Net Interest Income (NII) from the loan and investment book. For the nine months ended September 30, 2025 (9M25), this line saw a significant year-over-year increase of 16.6%. This uplift is tied to a recovered Net Interest Margin (NIM), which reached 4.0% in 9M25, helped by a lower funding cost that dropped from 4.8% in 9M24 to 3.8% in 9M25. That's a clear win on the cost side of the interest spread.

Next up, Net Commissions and Fee Income show solid, recurring growth. In 9M25, these fees grew by 8.0% year-over-year. This growth is pushing the recurrence ratio-which shows how much of the structural support expenses are covered by these fees-up to 62.1% as of September 2025, up from 60.0% in September 2024. It shows the digital strategy is working to embed services deeper into the customer relationship.

Here's a quick look at how the main revenue components stacked up for 9M25:

The results from financial transactions and asset management fees are also contributing positively. For the nine-month period, growth was strong in specific areas:

• Financial transactions revenue saw a 19% increase year-over-year.
• Mutual funds revenue grew by 15%.

Now, let's talk about the acquiring business, Getnet Chile. While the full 9M25 revenue isn't explicitly stated in the same format as the other lines, we do have some concrete figures on its profitability. For the first six months of 2025 (6M25), Getnet Chile reported profits of $21,175 million Chilean pesos, driven by sales volume. Looking ahead, management projects that once full market authorization is secured, Getnet could bring in additional revenue of nearly US$19 million per year in Chile over the next three years, targeting a 15% market share.

Overall, the bottom line for 9M25 reflects this strong top-line performance. Net income attributable to shareholders reached Ch$798 billion, which is a 37.3% increase year-over-year. That's the number that ties all these revenue streams together for the equity holders.

Finance: draft 13-week cash view by Friday.