RBS to set up own challenger

Written by Mark Evans

Royal Bank of Scotland is working on creating its own challenger bank to compete with new banks such as Starling, Atom, Monzo and Revolut.

Reports coming from Sky News say that RBS has assigned one of its senior executives (Mark Bailie, the bank's former chief operating officer) to the project, a project so secret most employees are totally unaware of it.

As RBS has just recently returned to profit, it seems the bank is now looking to invest in the future of financial services. It has already created some strong links to a selection of fintech companies, and alongside news of N26’s funding success it appears RBS is determined to ensure it stays in forefront of the digital game.

Creating a completely new entity is in many ways a simpler process, given that it will have no legacy, no existing branches or commitments and can employ the moist up to date technology. It can also choose its customers.