Bó Bank's Short-Lived Digital Banking Experiment

Bó Bank's digital banking experiment was a brief but notable chapter in the company's history. It was launched in 2020 with the aim of providing a more accessible and user-friendly banking experience.

The app was designed to be easy to use, with a simple and intuitive interface that allowed users to manage their accounts and make transactions with ease. Unfortunately, the app's user base remained relatively small.

Bó Bank's digital banking experiment was ultimately shut down due to a lack of traction and a need to focus on more core business areas.

Curious to learn more? Check out: What Is Digital Banking

Bo, a digital-only bank, has faced several hurdles since its launch last year, including the departure of its CEO and CPO.

In January, Bo's chief executive Mark Bailie left the bank, and CPO Ollie Purdue departed in April. This change in leadership has likely added to the challenges Bo is facing in the digital market.

Bo also had to re-issue 6000 debit cards earlier this year to comply with new EU regulations, which is just one example of the hurdles digital-only banks must navigate.

Research from Modularbank reveals that 90% of UK consumers cite tech features as an important factor when choosing a bank, highlighting the need for digital-only banks to stay ahead of the curve.

Expand your knowledge: First Bank Digital Banking

The digital-only challenge is a tough one to tackle, especially for traditional banks. They're trying to compete with digital natives like Monzo, Starling, and Revolut that have been around for a while and have a head start in terms of tech features.

Research from Modularbank shows that 90% of UK consumers cite tech features as an important factor when choosing a bank. That's a lot of people who are looking for digital offerings from their bank.

Incumbent banks are trying to stay relevant by improving their digital platforms or launching new digital brands. Take American investment banking giant JPMorgan, for example, which announced it will be launching a digital bank in the UK later this year.

However, changing company culture and developing user-friendly apps can be a challenge. Bo, a digital-only bank, has faced this challenge firsthand, having to re-issue 6000 debit cards earlier this year to comply with new EU regulations.

Bó had all the right ingredients to be a digital challenger brand, but it lacked substance. It had a millennial target audience, a short and snappy name, bright colours, and an informal tone of voice.

The product 'sausage' was where Bó fell short. It only accepted bank transfers, had one saving account, and offered no interest or overdrafts.

In comparison, Monzo offered multiple savings pots, up to 1.4% interest, and overdrafts. Which reported that Bó's service was lacking in features compared to its competitors.

Here's a comparison of Bó's features with Monzo's:

The lack of distinctive features was reflected in Bó's low Appstore rating of 3.2 out of 5.

Bo, the digital-only bank, hasn't failed. Alison Rose, RBS chief executive, said so herself. With just over 11,000 customers, Bo was launched in November last year.

Bo had some similar features to well-known challenger banks like Monzo or Starling. These included real-time transaction alerts, a "piggybank" feature for setting aside savings, and no transaction fees when used abroad.

The decision to merge Bo with Mettle, Natwest's digital business bank, was made after RBS published its Q1 results. Pre-tax profits had fallen to £519m, down from just over £1bn this time last year.

A NatWest spokesperson explained that the bank is prioritizing investment spend on products and services that support customers and colleagues. This is more critical than ever, given the challenges we're all facing.

The technology that underpins Bo will be integrated into Mettle as it's developed to better support SME customers. These customers play a crucial role in our economy, and the bank wants to help them thrive.

As a bank, RBS will continue to test and learn, investing in innovative banking services. This will provide a better experience for new and existing customers, helping them to succeed.

Additional reading: Banks and Banking Services

Bó was launched to the public on 27 November 2019 after a period of beta testing by RBS Group employees.

The development of Bó was estimated to have cost £100 million.

Mark Bailie, the chief executive officer of Bó, announced that he would be leaving the bank in 2020.

Bó was announced to close on 1 May 2020, and its 11,413 customers were given 60 days to withdraw their money.

Staff working for Bó were transferred to NatWest's Mettle business banking division.

Bo, the digital-only bank, has faced its fair share of challenges since its launch last year.

The departure of Bo's chief executive Mark Bailie in January and CPO Ollie Purdue in April was a significant setback.

Bo had to re-issue 6000 debit cards earlier this year to comply with new EU regulations.

Customers are increasingly looking for digital offerings from banks, with 90% of UK consumers citing tech features as an important factor when choosing a bank.

Incumbent banks are investing in digital platforms and launching new digital brands to stay relevant in the market.