Royal Bank of Scotland Group Plc is working to create a stand-alone digital challenger bank as as it looks to compete more effectively in the fintech sector, Sky News reported, citing sources.
The U.K. lender has reportedly set aside tens of millions of pounds for the new digital platform, which will go up against the likes of Monzo and Revolut. Mark Bailie, who has worked as RBS' COO since 2016, is heading the project, Sky News said.
The plan is confidential and is still very much in its early stages, and may not result in a new bank being launched, according to one source.
A spokeswoman for RBS told the news source that the bank was focused on using automation and technology to deliver more efficient banking services to its customers.