Royal Bank of Scotland (RBS) has acquired a 25% stake in millennial-focused fintech Loot through its digital bank Bo, which is set to launch later this year.
Launched in 2014, Loot offers current account and pre-paid debit card services to the students and other young customers.
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The app also provides customised insights on spending habits of the millennials. It has nearly 175,000 customers.
RBS acquisition of Loot:
As a part of the acquisition, RBS has invested £2m in the company, which follows a £3m investment made in the last year.
The Financial Times quoted Bó chief executive Mark Bailie as saying: “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.”
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By GlobalDataThe deal also represents first official transaction by Bó, which is currently undergoing beta testing. It is also expected to collaborate with many other fintechs.
Following the launch, the RBS digital platform will target customers with minimal savings and assist them in better managing their money.
Recently, RBS applied for a banking licence in Germany in preparation for Brexit.
Once it receives the German licence, RBS will revamp its existing Frankfurt branch with a newly licensed business to access other European markets.
