(Sharecast News) - NatWest Group could soon launch an online-based lender for small businesses, it emerged on Tuesday, in a bid to attract small-to-medium enterprises that might usually be seen as uneconomic by the big banks.
According to Bloomberg, the FTSE 100 banking conglomerate was looking to partner with the Belgium-based digital bank Aion and its technology partner Vodeno - both owned by US private equity giant Warburg Pincus.
The plan would likely see NatWest use Vodeno's data technology to make lending offers to small businesses that the large corporate lenders would currently overlook.
It could also use Aion and Vodeno's tech to offer 'banking-as-a-service', which would see it lending to customers shopping at retailers as part of the checkout process.
Bloomberg, which cited "people familiar with the matter", said the plan had the tentative support of senior people within NatWest Group, but was still in the early phase of planning and consideration.
It said the plan could see both NatWest and Warburg Pincus funding a joint venture if the proposal came to fruition.
At 1507 BST, shares in NatWest Group were up 1.48% at 213.2p.
Reporting by Josh White at Sharecast.com.
Natwest (NWG)
