Report on NatWest bank`s Creativty and Innovation

Assignment 1

Report on NatWest Bank 's Creativity and Innovation

Report submitted by __________ May 2007

Report on NatWest Bank 's Creativity and Innovation

NatWest Bank : Introduction and Historical Background

NatWest Bank is a member of the Royal Bank of Scotland Group (RBS Group . In

1968 National Provincial Bank (est .1833 ) and Westminster Bank (est .1836 , fused

as National Westminster Bank . Jointly , these banks could outline their history back

down the centuries through a ancestry of influential constituents , since the

1650 's

The declaration benefits

were

obvious - the merger enhanced balance sheet strength , created opportunities to

streamline the branch networks and enabled greater investment in new technology

The statutory process of integration was completed in 1969 and National Westminster

Bank commenced trading on 1 January 1970 , with the three-arrowheads symbol as its

Logo of the company with 3 ,600 branches , established a wide range of new services

including the bank 's first credit card , Access , in 1972 , and computer-linked cash

dispensers , Servicetills , in 1976 . Deregulation in the 1980s culminating in 'Big Bang

in 1986 , also encouraged National Westminster Bank to enter the securities business

County Bank , the Group 's merchant bank , acquired stockbroking and jobbing firms to

create NatWest Investment Bank . In the mean time , the International Banking

Division appeared to offer international banking services to large companies and to

focus on expansion in the USA , the Far East and Europe

In the 1980s new services were developed such as telephone banking and touch-

screen share dealing to assist the government 's privatisation programme The 1980 's

also saw the National Westminster Home Loans established in 1980 and the Small

Business Unit in 1982 . The Switch debit card extended the electronic transfer of

money to point of sale in 1988 . In the 1990s financial services markets world-wide

underwent huge variations and in response the bank refocused its activities , exiting

from a number of markets and adopting the title of NatWest

In March 2000 , The Royal Bank of Scotland Group completed the acquisition of

NatWest in a ?21 billion deal that was the largest take-over in British banking history

NatWest ranks fifth in the world and is now part of a financial services group which is

the second largest bank by market capitalisation in the UK and in Europe (NatWest

2006

Creativity and Innovation of the Bank

With granting a muscular competitive encourage to innovation , creativity and

efficiency , it always attains lead on rival firms . Innovation is a driver of productivity

growth . Novel products , processes and methods of working can relent efficiency

gains and quality improvements not only within the innovating firm , but also within

other firms that recap or institute on the innovation within their own firms . There are

a number of reasons why the rate of innovation is likely to fall below socially

optimal levels , and smaller innovating firms may face particularly severe barriers to

innovation . The key constraints are Limited access to risk capital : The informational impediments to free-

functioning markets for SME finance were discussed earlier in...