How did a medium-sized Spanish bank avoid the engulfing waves of financial sector calamity become the biggest bank in both Europe and Latin America in only 20-odd years? The authors trace Banco Santander’s 3-step internationalising journey - from its market-challenging responses to domestic deregulation through to its involvement in two significant European take-overs – of Abbey National and ABN Ambro - to unveil the secrets of its success.

Step 1 involved honing superior capabilities in Spain’s hyper-competitive home market - Europe’s most efficient - where your ATM could sell you tickets for events in Barcelona and Madrid - even Paris and London. After a series of take-overs made it Spain’s biggest bank, it moved onto Step 2 - a series of low-profile moves to learn about and create growth options in foreign markets. Sticking close to its cultural affinities, Santander started in South America, moving subsequently into Europe, and in both arenas followed its exploratory moves with Step 3 – full-on entry and integration of large-scale targets. Its sophisticated antennae for searching out and valuing potential targets and its ability to both decide on acquisitions and implement their integration with alacrity secured it a string of Step 3 successes. With Latin America and Europe conquered, will Asia and the US be next on the list?

The authors lay out Santander’s secrets – superior efficiency and customer information; enormous investments in its Parthenon IT structure and in education, training and incentives; the routine of preparing a dedicated HQ team (including ex-target senior executives) to plan each acquisition, and then run its integration; recognition of the key importance of good risk management and - above all – following the ‘clan-based’ cultural identity of the ruling Botín family in its determination to stick to its core retail banking focus.

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