Company: BCDRF
Filing Date: 2025-02-28
Form Type: 20-F
Source: 0000891478-25-000054
Chunk: 136

Company: Banco Santander, S.A.
Filing Date: 2025-02-28
Form: 20-F
Chunk 136
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 how Santander manages the following IRO:

| I- |     | Negative impact on the customer by failing to guarantee access to, or the use of, products and services that may present certain obstacles or weak spots. |

The management of vulnerable families and businesses is a key pillar of Grupo Santander's strategy, as it can make a difference to performance, perception and long-term sustainability. We identified and considered our customers’ difficulties and vulnerabilities, and trying to mitigate their potential impact. In 2024, we continued to make headway with embedding Group regulations 70 on vulnerable customers and the prevention of overindebtedness in every market where we operate. The aim is to provide a common approach and standards to avoid disparate management between countries. The Group is following indicators used by the units to identify and monitor customers in special circumstances. We’re also developing a methodology that will enable us to pinpoint potential signs of vulnerability in order to foresee and try to adapt services to the specific needs of certain customers. To coordinate a common approach across our footprint, local units met with the global team every two months in 2024 to facilitate alignment in embedding the Group’s vulnerable customer standards. We also launched a global training course on vulnerable customers so that all employees consider potential vulnerabilities and are aware of the lines of action in each case.

3.3.2 Financial inclusion and financial health This section outlines how we manage the following IRO:

| I+ |     | Positive impact on customers due to the bank’s offer of products and services that adapt to their needs and expectations and promote financial inclusion and health. |

i. Financial health and inclusion as a key driver of social progress Financial health and inclusion are a priority for Santander in contributing to social progress and promoting prosperity and entrepreneurship. In the markets where Santander operates, there are financial inclusion challenges that we strive to address with tailored business solutions. To assess the significance of our proposition, we use the World Bank's Global Findex Database to calculate the number of unbanked, underbanked and financially distressed people due to access and financing issues in the markets where we operate as a retail bank. In particular, we: • Considered different components of financial exclusion and aggregate indicators to cover all our target audiences. • Defined an inclusive financial system as one that maximizes the use of financial products and services, access and financing. • Measured involuntary financial exclusion through barriers that people who do not participate in the formal financial system perceive. • Applied a correction factor that matches our business penetration rate in the markets where we