NatWest is focused on shrinking its physical footprint in 2024 and will use the savings to invest in new technologies like AI.

The $892.4 billion bank saved 76 million pounds ($95.7 million) in property costs in 2024 as the bank focuses on driving consumer engagement through digital channels, Chief Executive Paul Thwaite said today during the bank’s fourth-quarter earnings call.

NatWest’s savings initiatives in 2024 included minimizing its property footprint, reducing its headcount and digitalizing more aggressively, Thwaite said.

The bank also reported a head count of 59,200 at 2024 yearend down 3.3% year over year, according to the company’s earnings report.

In 2025, NatWest aims to close 53 branches across the U.K. as transactions occurring over the counter has dropped by 62% between Oct. 2019 and Oct. 2024 while number of customers using the bank’s mobile apps has increased by 52% in the same time frame, according to the company.

The saved capital will be deployed toward expanding its investment in digital capabilities and AI in 2025, Thwaite said.

THE BIG PICTURE: The bank is seeing growing digital banking adoption, Thwaite said, adding that “eighty percent of our retail customers engage with us digitally, so we’re investing in further digital transformation to become more agile, faster and responsive to their needs.”

For example, retail customers can now receive a mortgage offer within 24 hours of application, an average wait-time reduction of 20%, he said.

Other banks, including Bank of America and JPMorgan, also reported rising digital banking adoption during the quarter.

The $2.4 trillion Bank of America reported active mobile users of 39 million up 5% YoY in Q4, according to its Jan. 16 earnings report. JPMorgan similarly reported its active mobile users increased to 57.7 million, up 7% YoY, according to the $4 trillion bank’s Jan. 15 earnings call.

BY THE NUMBERS: NatWest added 500,000 customers during the fourth quarter and reported a total customer count of 19 million at year-end.

In Q4, the bank also reported:

• $4.9 billion in total income, up 12.5% YoY;
• 79% of retail customers are fully digital;
• 49% of retail customer conversations were handled by gen AI chatbot Cora+, developed in 2017 with IBM and upgraded last year.

OF NOTE: NatWest during the quarter tapped core provider FIS for several payment and lending solutions, FIS announced on Feb. 11. The bank also chose payments provider Global Payments for its digital payment platforms.

While NatWest downsized its physical operations in 2024, the bank in July 2024 acquired $3.2 billion of Metro Bank’s mortgage portfolio, adding 10,000 customers, Thwaite said during the call.

NatWest in June 2024 also announced plans to acquire the retail banking assets and liabilities of $11.9 billion Sainsbury Bank for $3.2 billion. The acquisition is expected to close in Q2, Thwaite said.

FORWARD LOOK: NatWest has invested in Serene, a gen AI platform that detects early signs of financial vulnerability, the bank announced Jan. 28.

The bank also plans to maximize cloud usage and deploy AI data tools to increase efficiency and enhance customer experience, Thwaite said.

Editor’s Note: All amounts have been converted to U.S. dollars.

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