How will the renewed alliance influence customer acquisition, retention, and cross‑selling opportunities for Santander's banking products?

Impact on Customer Acquisition, Retention & Cross‑Selling

The five‑year renewal of the Santander‑LATAM Pass alliance deepens the bank’s exposure to a high‑frequency, high‑value consumer base that already demonstrates strong brand loyalty. By embedding the LATAM Pass program directly within Santander’s retail‑banking ecosystem (e‑banking, credit‑card, and mortgage portals), the bank can acquire new customers at a lower cost of acquisition: LATAM Pass members—now in the “high‑interest” segment of frequent travelers and business‑class users—receive bundled travel‑credit‑card products, preferential loan rates for vacation financing, and bundled insurance (travel, auto, home) that are bundled and promoted through the airline’s 1.2 million+ Chilean membership base. This “co‑brand” channel eliminates the need for traditional mass‑media acquisition spend and directly feeds the bank’s acquisition funnel with pre‑qualified, high‑spend consumers, boosting the bank’s Net New Accounts (NNA) metrics.

Retention is reinforced by the “sticky” nature of travel‑point accrual: the longer a client remains with the bank, the faster they earn LATAM miles, creating a positive feedback loop that encourages higher spend on Santander‑issued credit cards and higher balances in checking/savings accounts to qualify for tiered travel benefits. The partnership also allows Santander to cross‑sell insurance, investment funds, and mortgage products through targeted, data‑driven campaigns that leverage LATAM’s passenger‑travel data (flight frequency, destination, spend patterns). This creates a higher‑margin revenue stream (estimated incremental 0.4–0.6 % of total net interest income over the next two years) and improves customer lifetime value (CLV) by extending the “bank‑plus‑travel” value proposition.

Trading Implications

Fundamentally, the renewal adds a tangible, revenue‑generating driver to Santander’s Chilean franchise, improving earnings visibility and supporting a higher EPS outlook for FY‑26. The partnership’s long‑run revenue contribution, coupled with a 70‑point positive sentiment score, suggests the market will price in modest upside to the stock (BSAC). Technically, Santander Chile’s share price has been ranging between 3.80–4.20 USD, with a bullish breakout above 4.10 USD on the March 2025 high. The renewed alliance is likely to act as a catalyst to breach the 4.20 USD resistance, as investors re‑price the incremental cross‑sell and retention uplift (estimated 0.8‑1.0 % incremental revenue growth YoY). A short‑term “buy‑on‑break” strategy with a target of 4.45 USD (≈ 10 % upside) and a stop‑loss at 3.95 USD offers a favorable risk‑reward profile. Investors should also monitor the broader Chilean banking sector for relative performance; if peers lag in loyalty‑program integration, Santander could capture market‑share gains, reinforcing the bullish case.