When was rbs established

Branches: The bank has opened branches and sub-branches in Scotland since in its own right. In , after the merger with National Commercial Bank of Scotland, the new combined bank had branches. In offices excluding overseas branches were operating. A company was formed to manage the payments, and it soon found that it had spare money to invest. Its directors had the idea of starting a bank, and petitioned King George I for his approval.

In a royal charter was granted, establishing The Royal Bank of Scotland. In the bank made history by granting the first ever overdraft. Royal Bank of Scotland's Glasgow branch in the early 19th century. Until The Royal Bank of Scotland traded only from Edinburgh, but in that year it opened its first branch-office, in the fast-growing city of Glasgow.

Already a major port city, Glasgow was poised to become a key centre of manufacturing too. Within two decades, the Glasgow branch was already conducting more business than head office in Edinburgh. In the early years of the 19th century England suffered a succession of financial crises, the most devastating of which, in , ruined 60 banks.

By the mids, the contrast between the English and Scottish systems of banking was already well-established, but the gulf was widened by legislation in and In England and Wales, the new law was designed to bring a gradual end to the practice of banks other than the Bank of England issuing their own notes, but in Scotland the new law was a little different. It made it easier for banks to keep up their note issues and, indeed, Royal Bank of Scotland continues to print notes to this day.

In banks, typewriters and adding machines became popular, permitting machine-accounting, the systematic generation of bank statements and the handling of ever-growing numbers of accounts without needing a simultaneous increase in staffing.

By the s competition for customers was becoming more intense. Banks, particularly in England, had previously focussed on attracting relatively well-off customers, but now they began to court smaller savers.

For many people, this was their first experience of dealing with a bank, and of having easy access to savings services. The outbreak of the Second World War in — just like the First World War a generation earlier — brought many new problems and responsibilities for banks, including supporting the war effort and keeping the economy running as smoothly as possible, while simultaneously coping with staff shortages as men went away to fight.

In addition, many bank branches were damaged or destroyed by enemy bombs. Austerity and economic hardship persisted for years after the end of the war in , but Britain and its banks gradually returned to prosperity. In the s and s new services were introduced, including mobile and drive-in banks, personal loans, innovative savings schemes and the earliest forms of cash machine. One of the most visible outcomes of the reorganisation was the introduction of the daisy wheel brand which still represents the Royal Bank of Scotland today.

Meanwhile, change was also afoot among the English banks. It, too, introduced a new brand mark that continues to represent NatWest today. Before , the technological revolution in banking had largely been in back offices, changing the way account information was held and processed. In the last two decades of the century, however, the revolution became customer-facing, with the introduction of telephone banking in the late s and internet banking in the late s.

Banks became more focused on tailoring services to specific customer needs, with the introduction of accounts aimed at specific markets, for example students or children.

In the early s the corporate structure of the Royal Bank underwent a major reorganisation. The bank refocused on its core business of retail banking and set about building a platform for future growth.

Soon afterwards, a crisis in global financial markets and deteriorating economic conditions across the world weakened many financial services organisations. This situation was made worse for RBS by strategic decisions that were subsequently shown to be bad mistakes.

RBS became highly vulnerable to the downturn and as a consequence became part owned by the government in This website uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more here.