Royal Bank of Scotland (RBS) is set to launch a standalone digital bank in a bid to tackle the growing competitiveness in the digital banking sector.
The new digital consumer bank, called Bo, is expected to be launched next year.
The digital lending solution will be led by RBS’s former chief operating officer Mark Bailie and will be available only on mobile devices.
The RBS digital bank will leverage artificial intelligence and big data techniques to support its customers with their financial requirements.
RBS executives are planning to transfer one million NatWest customers to the new platform. However, detailed information on the new platform is still not available.
An RBS spokeswoman was quoted by Sky News as saying: “As part of the bank’s wider investment in digital and innovation, RBS is working on a range of projects to better serve our customers in the era of digital and open banking.
“One of the projects we are looking at is building a separate, digital-only bank for personal customers.”
Currently, major UK-based banks are involved in the development of money management applications in order to tackle the growing market presence of fintech start-ups such as Monzo and Revolut.
Last month, RBS announced to close 54 branches in England and Wales. The closure will affect 258 jobs.