One of the UK’s largest retail banks, NatWest Group, is set to significantly increase its engagement with the country’s extensive network of fintechs.
The company has announced the launch of its Fintech Growth Programme. It will select five fintechs to join the programme based on the applicants’ ability to provide solutions for specific payments problems.
Successful applicants will gain the resources, expertise and networks of the high-street bank, which recorded revenue growth of 9% to £14.8bn in 2023, to support scaleup ambitions.
Mark Brant, Chief Payments Officer at NatWest: “Innovation and collaboration are fundamental to growth, especially in a challenging commercial environment. This programme champions NatWest’s innovation by working with fintechs to co-create solutions to lead the future of banking.”
Only pre-Series A funding companies can participate in the programme, suggesting that most of the applicants will be early stage startups looking for new funding and networking opportunities.
The UK on average sees between 700,000-900,000 startups set up every year, and though not all of these are in fintech, finance’s standing as one of the country’s biggest economic segments means a substantial number will be.
NatWest’s new programme demonstrates the growing links between the UK’s traditional established banks and fintech companies as banks look to get a technological edge and meet the rising competition of challenger banks.
In NatWest’s case, the bank is a long-term partner of the fintech sector, with a senior executive at the firm telling Payment Expert earlier this year that fintech is a ‘real part’ of the bank’s strategy. Moving forward, the bank hopes that participants in the programme can help drive its own innovation pipeline.
David Grunwald, Director of NatWest Innovation, remarked: “This programme lays a pathway to create better outcomes for our customers. Working this closely with fintechs and UK entrepreneurs strengthens our ability to be future focused, while supporting the growth of the innovation economy.”