RBS invests in digital banking startup to rival Monzo and Starling

The Royal Bank of Scotland has invested in digital current account aimed at students and young people that has set out to rival challenger banks Monzo and Starling.

The £2m investment in fintech startup Loot was made through Natwest’s digital-only retail bank Bo, which is due to launch this year, and takes its total shareholding to 25 per cent following an initial £3m investment in July last year.

Loot launched in 2014 to help students manage their finances and now has more than 175,000 sign-ups.

Verified customers are provided with a pre-paid debit card and are offered insights into their spending habits, with the option to set daily or weekly budgets.

Bo chief executive Mark Bailie said: “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.”

Other investors in Loot include Speedinvest, Global Founders Capital and Portage.