Royal Bank of Scotland Group PLC has acquired a 25% stake in financial technology startup Loot on behalf of the new digital bank, dubbed Bó, that RBS would be launching later in 2019, the Financial Times reported.
RBS invested a further £2 million in Loot, which the FT noted was in addition to a previously unannounced investment of £3 million in 2018.
Loot offers a current account and prepaid debit card with insights into spending to help young people save, according to the report. People close to the project told the FT that Bó will team up with other similar fintech firms.
Bó, which is expected to shift from private beta testing to public beta in the first half, plans to offer services that would help customers with low savings manage their money better.
Bó is among several digital initiatives that RBS has launched in recent years. It previously launched Mettle, a stand-alone digital bank for small-business customers, and Esme, a digital lending site launched under its National Westminster Bank PLC brand that allows small and medium-sized businesses to apply for loans of up to £150,000 online.