Royal Bank of Scotland testing new Natwest digital business banking platform
Royal Bank of Scotland (RBS) has started testing a new business banking platform alongside a separate digital retail bank.
The platform, which is being run under the Natwest brand, is in very early-stage tests with a small number of small businesses.
The business bank tests are running alongside a separate retail banking offering in development, Press Association first reported.
Britain's legacy banks are racing to update their systems and keep pace with digital-only challenger banks and other competitors who are pouring money into new technology for customers, with RBS under particular pressure to revamp its systems after a string of scandals.
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RBS has faced repeated censure for the actions of its global restructuring group (GRG), which regulators have condemned for unethical business practices related mainly to overcharging small business customers.
Meanwhile, smaller competitors in the business lending space will be provided a boost by a £700m boost paid by RBS to settle state aid concerns, following the bank's bailout a decade ago.
Some £425m will be given to challenger banks to help them develop new business lending products, with another £275m to give small firms an incentive to switch their bank accounts away from RBS.
MPs on the Treasury Select Committee and other bodies have repeatedly called for more competition in small business borrowing, amid concerns that the sector is underserved.