23rd Jun 2020 09:24
(Alliance News) - Royal Bank of Scotland Group PLC on Tuesday said that it has extended the deadline for business customers to take advantage of incentives for switching to other banks, a programme required of the state-backed lender to increase competition in the UK.
"As a result of the on-going Covid-19 pandemic, fewer customers have been switching under Incentivised Switching Scheme, and these changes are being announced by Banking Competition Remedies Ltd to preserve the momentum and aims of the ISS. Bringing forward these changes now, which might otherwise have been implemented at a later date, provides RBS with greater certainty," the FTSE 100-listed lender said.
The duration of the period under the switching scheme for customers to apply to switch their account will be extended to February 28, 2021, from August 25 and customers will have until June 30, 2021, to complete the switch, the Edinburgh, Scotland-based bank explained.
An additional 200,000 RBS and NatWest business banking customers with turnover of up to GBP1 million will have the opportunity to participate from August 25, RBS added.
The extension of the account switching scheme do not change the total number of customers targeted to switch under the scheme and, as a result, there is no material change anticipated to the current financial outlook for RBS, it said. The existing requirement on RBS to make a potential further contribution to the switching scheme remains capped at GBP50 million.
Shares in RBS were up 2.6% at 123.60 pence each in London on Tuesday morning.
By Tapan Panchal; [email protected]
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