RBS is set to embark on a digital transformation journey to redress its financial struggles. The bank has faced a series of challenges, including a £7 billion annual loss, the eleventh consecutive year of losses. The bank’s CEO, Ross McEwan, has outlined a plan to invest £2 billion over the next four years into digital structures and safety systems.
RBS aims to become the number one bank for customer service, trust, and advocacy by 2020. To achieve this, it will focus on reducing costs and improving its digital services. The bank plans to cut costs by £2 billion by 2020, while also reducing its branch network and workforce. It also intends to increase its digital customer base from 4.2 million to 6 million by 2020.
RBS’s digital strategy includes the launch of a new digital platform, Esme, which offers unsecured loans of up to £150,000 for SMEs. The bank is also working on a project with Deloitte and a blockchain consortium, R3, to create a system that uses distributed ledger technology to improve the speed and cost of clearing and settlement.
The bank’s focus on digital transformation is expected to improve customer experience and help regain trust. However, it also faces significant challenges, including the need to address legacy systems and the risk of cyber threats.
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