Loot, the UK digital current account for students and millennials, enters administration after a potential sale falls through

TechCrunch | 5/22/2019 | Staff
moemajor (Posted by) Level 3
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Loot, the digital current account aimed at students and millennials, has called in administrators after appearing to have run out of cash. According to sources, the U.K. fintech was unable to raise additional funding in time after a potential sale to banking giant RBS fell through.

Intriguingly, Royal Bank of Scotland Group indirectly owned a 25 percent stake in Loot via an investment by Bó, the digital-only retail bank being developed by RBS subsidiary NatWest. RBS announced that Bó had invested £2 million in Loot in January this year, following an initial investment of £3 million in July 2018.

Insiders - Loot - Bó - Product - Clearly

It was also presumed by many fintech insiders that Loot had been white labelled and was powering the Bó product. Clearly that was never the case, and it now raises questions around why RBS/Natwest would invest in a competitor, only to sees its demise six months later.

Loot’s other investors included Portag3 Ventures (Power Corporation’s corporate VC arm), Austrian VC firm Speedinvest, Rocket Internet’s GFC, and...
(Excerpt) Read more at: TechCrunch
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