Nationwide, Investec and Co-op Bank are the Innovation Fund Pool B winners in the latest Banking Competition Remedies funds allocation.
The Banking Competition Remedies fund was set up to help boost competition in SME lending with cash from RBS.
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Royal Bank of Scotland is freeing up a pot worth a total of £775m. The procedure is the last remaining penalty dating back to its £45bn UK government bailout in 2008.
This is made up of £350m available to incentivise switching and another £425m to boost business banking deals.
The Banking Competition Remedies (BCR) board is overseeing the RBS £775m giveaway.
Banking Competition Remedies: Pool B winners
Nationwide Building Society is to receive an award of £50m, with £15m each for Investec and Coop Bank.
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By GlobalDataSpecifically, Pool B aims to promote competition in the SME sector through the modernisation of existing business current account offerings. In addition, it is to promote new business current accounts or ancillary product propositions for SMEs.
Nationwide, Investec and Co-op Bank are providing BCR with public commitments stating what each will deliver with these funds.
Progress against each successful applicant’s public commitments will be published on a quarterly basis on the BCR website.
Godfrey Cromwell BCR’s Chairman says: “Pool B is the second group of grants from the Capability and Innovation Fund. It aims to increase competition with the overall purpose of improving financial products and services available to SMEs.
Banking Competition Remedies: Pool A winners
Metro Bank, Starling and ClearBank are the first round winners of the RBS giveaway. In February, BCR awarded Metro Bank £120m, Starling £100m and ClearBank £60m.
Thirteen applications from 10 applicants for Pool B funds were submitted in February.
BCR will make further awards in the second half of the year relating to Pools C and D.
