RBS app-only bank Bó takes second bite out of Loot

By Roger Baird on 7th January 2019

Fintech

The high street bank’s digital-only operation now owns a 25 per cent stake of Loot as it prepares for a 2019 launch.

RBS app-only bank Bó takes second bite out of Loot

The soon-to-be launched digital-only banking arm of RBS has made a second multi-million pound investment in a financial app aimed at students and young people.

Bó has invested £2m into digital current account Loot, which has more than 175,000 customers .

This follows an initial investment of £3m last July, which now gives the state-backed high street bank a 25 per cent stake of the app launched in 2014.

Loot customers are provided with a pre-paid debit card and are offered personal breakdowns of their spending patterns, allowing them to set daily or weekly budgets.

Bó chief executive Mark Braille said: “Loot is a really exciting brand and one that we’re proud to be associated with. Through its innovative use of technology and intention to change the status quo, it’s quickly built a following of loyal customers, with potential for rapid future growth.”  

RBS said Bó is testing its operations and currently has a “view to launch in 2019”.

The move by RBS follows Spanish high street player Santander, which said last May it intended to establish its own digital bank under a separate brand in a bid to compete with growing app-only rivals such as Monzo and Tandem.

These units, launched by established players, are often called a ‘flanker’ brands, and are meant to help the older bank keep pace with new digital disruptors.

RBS has launched a number of other ‘flanker’ brands in recent years, such as Mettle, a digital lender aimed at small businesses, and ESME, an online corporate app.

Comments

AltFi Berlin Summit 2019

AltFi is coming to Berlin this Winter for our first annual Summit in the City.

18th November 2019