Nationwide Building Society has won £50m share of a fund that is aimed to boost competition in business banking.
The award will enable the Building Society to launch into business banking, Nationwide has pledged to match it with £50m of their own money over the next five years.
The Co-operative Bank and Investec Bank both secured smaller awards of £15m each. The programme is funded by the Royal Bank of Scotland (RBS) which was a condition of the bail out for RBS during the financial crisis.
Joe Garner, chief executive of Nationwide said, “This is good news for small businesses.
“The fund gives unprecedented opportunity to accelerate plans and inject competition into this market.”
He added, “While the money is a massive boost for our plan, we also aim to match every pound of the £50m award with our own funding over a five-year plan.”