The Royal Bank of Scotland (RBS) is embarking on a significant transformation, rebranding itself as NatWest and outlining ambitious goals to establish itself as a purpose-driven institution with a focus on enterprise, education, and environmental sustainability.
The decision to retire the bank’s historical name, which spans over three centuries, coincides with the announcement of a £3.1 billion profit for 2019—almost double the previous year’s £1.6 billion. This rebranding marks an important step for a once global banking powerhouse that faced severe challenges in the wake of the financial crisis, ultimately resulting in a government bailout.
Alison Rose, the newly appointed CEO, revealed the rebrand as part of a broader strategy to move beyond the institution’s troubled legacy. NatWest stands as the primary consumer-facing brand within the RBS group, generating 80% of its profits. In her vision, Rose emphasizes a commitment to being transparent and fair with customers and suppliers while promoting responsible corporate citizenship and accountability.
On the environmental front, NatWest has set ambitious targets, including achieving net carbon neutrality by the end of this year and discontinuing lending to coal companies by 2030. Additionally, the bank aims to reduce the climate impact of its financing activities by 50% over the next decade.
In terms of strategy, the bank aims to streamline its complex business lines and models that underperform, enhancing operational efficiency. Rose states, “Our renewed focus on innovation has enabled us to collaborate effectively with partners, create new income streams, and improve our market responsiveness.”
She further asserts the necessity of financial discipline, indicating a willingness to pull back from projects that do not yield significant benefits for customers or investors. By refining its innovation strategy and judiciously allocating resources, the bank seeks to fortify its core operations and enhance its offerings across personal, business, commercial, and corporate banking sectors.