Telecom Italia (TIM) and Spanish financial services provider Banco Santander have agreed to set up a joint venture to provide consumer-credit services in Italy, confirming earlier reports. The initial aim of the JV between the Italian operator and the Spanish banks’s Santander Consumer Finance unit is to offer financing for the acquisition of devices via instalment loans before providing other consumer finance and insurance products in a subsequent phase.
The new company is expected to begin operations next year, with Santander Consumer Bank controlling 51 percent of the JV and TIM S.p.A. the remaining 49 percent. TIM’s CEO Luigi Gubitosi said the move will allow it to free up capital, reduce credit risk, support sales and broaden the company’s revenue base towards new profitability opportunities. He added that the group picked Santander as its partner due above all to the Spanish lender's experience and expertise in similar partnerships that will ensure a quick time to market at low cost.
