Nationwide eyes RBS competition funding

Nationwide building society has revealed its plans to enter the market for business banking by taking a slice of Royal Bank of Scotland’s challenger fund.

RBS was forced by the EC to set up a near-£800 million pot to fuel competition in return for avoiding the sale of 300 Williams & Glyn branches, and Nationwide said yesterday that it wanted to use the fund to launch a current account for smaller firms.

Chief executive Joe Garner said: “We know there is demand for a Nationwide business current account, because at least 50,000 members ask us each year if we can help.

“This funding gives us a way to enter the market, serve society and meet our member needs several years before we would otherwise have re-considered it.

“We are already transforming the market in personal current accounts, winning more switchers than the big banks combined.”