The Royal Bank of Scotland and Natwest will be launching a £1bn fund in the near future. The purpose of this fund is to help provide financing for small businesses in the United Kingdom. Businesses will be able to get a fixed rate loan ranging from £1,000 to £250,000. There is also no arrangement fee required to get the loan.
Small Business Loans
The Royal Bank Of Scotland has stated that nine out of ten businesses that apply will know a decision within five days. Les Matheson is the chief executive officer of Personal and Banking for the Royal Bank of Scotland. He stated that the reason RBS has set aside funding for small businesses is because they play a very important role in the United Kingdom economy. He also stated that the Small Business Fund is one way that RBS can back businesses in the United Kingdom.
Les Matheson stated that he wanted Royal Bank of Scotland to be the number one bank for customers. He wants customers to feel comfortable doing business with the bank. Additionally, he wants customers who have done business with RBS in the past to start trusting the bank again. Les is hoping that customers will be able to achieve their goals by doing business with the Royal Bank of Scotland.
The fund is being set aside to help small business owners in the United Kingdom will be divided into three areas. It will target both existing and new customers who want to use the funding to diversify or grow the business. The Royal Bank of Scotland is a 81 percent state-owned lender.
A few days ago, the bank announced that they would be spending £1 billion on improving service for their customers. In order to improve customer service, the staff members who work for the company would be receiving more training. This will allow them to offer more services and advice to firms locally instead of needing to refer back to a central office. Furthermore, the bank stated that they would be improving wealth management services for its customers that had the highest net worth.
Royal Bank of Scotland Retail Problems
The Royal Bank of Scotland is trying to rebuild its reputation. It is still battling a wide range of problems, including banking complaint and misselling scandals. It is also dealing with regulatory probes and IT issues. One of the major scandals that the bank is dealing with involves payment protection insurance, or PPI. The purpose of payment protection insurance is to provide loan repayment coverage if the person had an accident, became ill or or lost their job.
Millions of customers have complained about the service saying that they never needed or wanted it in the first place. Others have stated that the bank did not explain all of the terms and conditions to them before they were sold payment protection insurance. The Royal Bank of Scotland has paid billions of dollars in compensation to customers who have been a victim of the PPI scandal. However, the scandal is not over yet.
The bank has paid millions in redress and administrative fees due to the mis-selling of complex derivatives. The Royal Bank of Scotland shut down its Global Reconstructing Group after it was accused of profiting from businesses that were going into default.
Britain financial regulators fined the Royal Bank of Scotland and Natwest £15m in August 2013. Additionally, many of RBS’ customers were not able to access their account online or via card due to a collapse in the IT infrastructure. As a result of this, Royal Bank of Scotland pledged £1bn to restore its IT systems.
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