RBS tells GTS stragglers to hurry-up and move on

The Edinburgh-based lender is accelerating the pace of its global GTS exit and is warning straggling customers to switch banks or risk service interruption after December 31.

RBS chief executive, Ross McEwan, chose to quit what was once seen as one of the bank’s most prized assets, acquired in RBS’s ill-fated takeover of Dutch lender ABN Amro as he focuses on domestic lending.

RBS announced that it would withdraw from transaction services outside of the UK and Ireland back in 2014, and in 2015 Mr McEwan announced that GTS would be exited.

BNP Paribas was named as RBS’s official partner in the move, with preferential transfer conditions if customers chose the French bank.

But RBS is now writing to customers to make sure they know that they will have to move on.

In the memo, customers have been told that if they haven’t yet started to move their accounts yet then they need to do so urgently.

The still 73 per cent state-owned banks says that from January 1, 2017, services including cash management, trade finance and accounts as well as cash and card will no longer be provided by the bank out of its core markets, and RBS will no longer accept any deposits or honour any payment instructions.

Of the 7,000 clients once counted by GTS in total in the 32 affected markets, just over half have already transitioned to another provider.

However, it is believed 3,000 or so still need to find new providers.

Nearly 70 per cent are domiciled in Europe, and half of those are based in the Netherlands.

Most of the remaining clients are quite far into the process, but a small number of companies have yet to start the move.

Jerry Pierce, RBS’ head of GTS, said: “Throughout this process, we have stayed in touch with our customers, and encouraged them to accelerate their exit well ahead of the final termination date. We have taken steps to ease the transition for customers, including the referral agreement with BNP Paribas and exceeding the contractual notice periods.

“The deadline is fast approaching. Most clients have already found new providers, or are well on the way to doing so, but there are a few that have a lot still to do. Whilst RBS will assist these clients in moving, there is a point at which we will have no option but to deactivate accounts. We strongly encourage our remaining customers to prioritise those actions that need to be established with a new banking provider well ahead of the deadline.”