Saga set to launch an over 50s savings account as it finalises tie-up with NatWest
Updated:
NatWest and Saga are in final talks over a banking tie up.
The partnership between the bank and over 50s specialist would see Saga launch a range of personal banking products as it looks to expand its money business.
Saga posted an update ahead of its annual general meeting on Tuesday, confirming it had 'agreed heads of terms' with NatWest.
Saga, which offers products including cruises, a savings platform and insurance services for people over 50, said a savings offering would be the first product to launch under the partnership.
It said: 'This partnership would combine NatWest's scale and banking capabilities with our customer insight and marketing strengths and support our ambition to continue growing our money business.'
'Further updates will follow in due course,' according to the group.
Saga, the over 50s platform which offers products from cruises to insurance is set to tie up with NatWest in a banking partnership
The discussions come after London-listed Saga struck a 20-year partnership for motor and home insurance with Belgian firm Ageas late last year, while also agreeing to sell its insurance underwriting business Acromas to the group.
The sale is expected to completed by July 31.
In its update on Tuesday, Saga said demand for holidays remained robust, with booking revenues up 14 per cent and passengers numbers 13 per cent higher than a year earlier.
Saga's ocean and river cruise division enjoyed 'another strong start to the year', with its load factor - how well it fills its cruises - up year-on-year at 95 per cent and 93 per cent respectively.
Mike Hazell, group chief executive of Saga, said: 'Saga has started the financial year on a positive note, with all our businesses performing well and in line with expectations.
'Looking ahead, we are focused on continuing to grow our travel and money businesses, while successfully transitioning to our new simplified insurance model.
'We are progressing well with our medium-term plans and the potential new partnership with NatWest is another good example of this.'
The Government exited the last of its stake in NatWest in May and the banking giant has been eying expansion after finally emerging from state backing.
It ruled out a takeover of TSB last week having been tipped by banking analysts to be the frontrunner in an acquisition of TSB.
A NatWest Boxed spokesperson said: ‘We have a long-standing partnership with Saga and look forward to continuing to support its growth ambitions. The next stage of our partnership will serve to broaden and differentiate Saga Money’s product range to meet evolving customer needs, in partnership with NatWest Boxed. We will share more details in due course.'
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