Glasgow-based bank Virgin Money has partnered with Redspire, a local FinTech, to help boost its presence in the business account market, according to a report from Daily Business Group.
The bank is working to launch its Virgin Money Business program next year, with the target being 100,000 small to medium-sized business (SMB) customers by the end of 2025 and 20,000 by the end of 2022, the report says.
Virgin Money is currently transforming its existing system for business current accounts into a new form, a “wellness tracker” for SMBs. Redspire will work with Microsoft to create digital-based solutions.
Gavin Opperman, group business director at Virgin Money, said the collaboration was “key to our success,” and that partnering with Redspire was prudent because of the latter company’s “agility and ability to respond to our needs.”
Redspire CEO Billy Lyle, who is also the engagement lead with Virgin Money, said 2020 has been a unique year and that substantial digital transformation “has taken place in months rather than in years.”
According to the report, the pair-up with Redspire reflects Virgin Money’s commitment to the £35m award it received from the Banking Competition Remedies (BCR) Capability and Innovation Fund. The fund was created to help spark competition as part of an agreement between the U.K. government and the European Commission after the Royal Bank of Scotland failed to split off its Williams & Glyn business as a separate entity, per the report.
The fund, which is worth £425 million, will be used to help SMB lenders. Virgin Money’s ultimate goal is to ramp up its regional franchise, time with relationship managers and availability of digital technology and services.
PYMNTS reported on the RBS fund earlier this year, writing that Virgin’s venture into the banking market would make it a “true disruptor” in that field by providing an alternative to traditional banking methods.
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