Royal Bank of Scotland has purchased a 25% stake in London-based fintech startup Loot, as it continues to further develop digital banking services.  

Following an initial investment of £3 million made in July 2018, the bank has invested an additional £2 million.  

Loot aims to help students and young people manage their finances; providing customers with detailed spending insights and a pre-paid debit card. 

Since its launch in 2014, the bank has received more than 175,000 sign-ups by customers across the UK. 

Addressing Challenges 

RBS joins a host of other investors in the startup, which includes Portage, Global Founders Capital and Speedinvest.  

The investment, RBS announced, was made on behalf of Bo, a digital-only bank currently under development by retail banking affiliate, NatWest.  

Bo is expected to launch later in 2019 and appears to be the bank’s response to an ever-changing, digital-focused financial services landscape.

A number of digital-only challenger banks, such as Monzo or Revolut, have been drawing customers away from traditional high street institutions.

RBS has already launched Mettle, a digital-only bank for small businesses, as well as an online corporate lender, Esme.

Bo Chief Executive, Mark Bailie, who previously served as RBS’ chief operating officer, said Loot’s technology focus is reflective of RBS’ future plans.

“Loot is a really exciting brand and one that we’re proud to be associated with,” he said. “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.”