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Royal Bank of Scotland is installing new ATMs in around 300 branches as it creates Williams & Glyn, a standalone bank that is being formed from RBS branches in England and Wales and NatWest outlets in Scotland.

The European Union (EU) called for the separation as a result of RBS’s £45 billion taxpayer bailout in 2008. An attempt in 2012 to sell them to Santander UK collapsed after it became frustrated with IT issues relating to the separation of the network. A year later a deal was announced with a consortium backed by investments from the Church of England. Then in 2015, RBS said it might also consider an auction for the branches.

Earlier this year, it revealed it was on track to miss an end of 2017 deadline to offload them. A statement issued by the bank said: “Due to the complexities of Williams & Glyn’s customer and product mix, the programme to create a cloned banking platform continues to be very challenging and the timetable to achieve separation is uncertain. RBS is exploring alternative means to achieve separation and divestment. The overall financial impact on RBS is now likely to be significantly greater than previously estimated.”

Failure to meet the deadline is likely to result in significant financial penalties being imposed on the FI. Work on the standalone, free to use ATM network, meanwhile, is set for completion later this month.

By Scott Thompson

by Scott Thompson
Scott is Senior Editor at IBS Intelligence. You can follow him on Twitter and contact him at: Scott.Thompson@ibsintelligence.com
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