RBS to trial standalone digital banks as lender looks at online offering
ROYAL BANK of Scotland is trialling two standalone digital banks under its NatWest brand, as the lender mulls whether to launch a raft of online-only products to market.
A senior source at the lender said that a handful of SME customers are now testing one of the standalone banking platforms aimed at business banking clients.
It is understood that the lender’s chief executive in charge of commercial and private banking, Alison Rose, is overseeing the SME banking trial project, which falls under its NatWest brand.
RBS is also trialling a separate digital NatWest retail bank that would serve everyday customers, with both projects among a number of online banking programmes currently under development.
It is unclear how soon either project could hit the market if approved. The lender’s decision to trial the two standalone banks under the NatWest, rather than RBS brand, follows new rankings from the Competition and Markets Authority showing RBS coming last out of 14 banks on overall service quality on business banking. NatWest, in comparison, came sixth.
Reports emerged earlier this month that HSBC is working on its own digital bank for business banking, which could launch as early as this year.
It was also reported that digital challenger, Starling, was helping RBS with a secret project to build a standalone bank.
If RBS’s product get the green light it would help modernise the lender’s offering. The likes of Metro Bank, TSB, CYBG, and Starling are expected to bid for a portion of a £775m fund meant to promote competition for banking services to SMEs.