The RBS Alternative Remedies Package is a result of the government supporting the Royal Bank of Scotland (RBS) during the 2008 financial crisis. One of the conditions of the support was RBS had to reduce its share of the Small to Medium Enterprise (SME) banking market.
It’s made up of two funds: The Capability and Innovation Fund and the Incentivised Switching Scheme. These funds are being managed by the independent Banking Competition Remedies Limited (BCR).
Challengers like Metro Bank were able to pitch for a share of the Capability and Innovation Fund to improve their financial products and their capability to compete with RBS. Meanwhile, the Incentivised Switching Scheme will be used to fund incentives to encourage eligible RBS SME customers to switch to other banks.
RBS customers have been able to switch to Metro Bank ever since we launched in 2010, but the Incentivised Switching Scheme offers eligible RBS customers an additional incentive to join the revolution.
The switching incentive for eligible RBS customers began 25 February 2019. There is no end date currently specified – it is expected that the scheme will run for up to 18 months.