RBS to launch “beta” of new digital bank in Q3
RBS is progressing with its mobile bank initiative, with plans to move one million customers onto the new offering, according to Forbes.
These customers will come from RBS’s retail banking subsidiary, NatWest, and will help the bank make significant per-customer cost savings compared to what the costs are now, Forbes says.
It is understood Mark Bailie, COO of RBS, is spearheading the project. The team consists of 80 developers and bankers.
The beta version of the mobile bank is on track to be ready in Q3 this year.
The business model, according to Forbes, will focus on “marketplace” banking, enabling customers to “switch and save” on financial products from RBS as well as a range of its partner fintech firms. RBS will earn commission on this.
The target customer base will be less financially fortunate and savvy customers of NatWest, it is understood.
RBS remains government-owned, following its bailout during the financial crisis a decade ago. It unsuccessfully tried to carve out a separate bank under the Williams & Glyn brand, sinking £345 million into the project and giving up after three years (defeated by the tech complexities). It was then mandated by the government to set up a £750 million fund for smaller banking players in the UK that offer business current accounts and lending.