7th Jan 2019 15:19
LONDON (Alliance News) - Royal Bank of Scotland Group PLC on Monday said the FTSE 100-listed bank has acquired a significant stake in digital banking start-up Loot Financial Services Ltd.
Loot's current account and pre-paid debit card are targeted at students and received a GBP2 million investment from RBS, on top of a previously announced GBP3 million investment back in July.
This brings RBS's investment in Loot to GBP5 million, with RBS now holding a 25% stake in the firm.
Loot was launched in 2014 and, at present, has more than 175,000 sign-ups.
The RBS investment was made on behalf of RBS's digital-only bank, Bo, which will open later in 2019 and is being developed by National Westminster Bank PLC. Bo is currently in private beta testing.
"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," Bo Chief Executive Mark Bailie said.
Shares in RBS were up 1.3% at 224.00 pence on Monday afternoon.
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