PART-nationalised Royal Bank of Scotland has launched a £700 million revamp of its retail banking arm, including a refurbishment of its 2066 branches and a drive to revitalise the RBS brand in Scotland.
RBS said it would spend the money between 2013 and 2016 in a move that is partly aimed at reducing the costs of the business.
The bank, which is 82%-state owned, said it would improve complaints handling, allow customers to open accounts quicker, simplify the processing of mortgages and provide new self-service machines in its branches.
Ross McEwan, chief executive of RBS's UK retail business, told investors he planned to make RBS the best retail bank in Britain. "There's a big space there for it. I've not met anyone who believes there's great retail banking in the UK."
He is keen to rebuild the RBS brand "given the hit it has taken" and grow market share in Scotland, where it has 305 branches.
Mr McEwan said the bank will also invest in rejuvenating NatWest, the brand it uses south of the Border which "has lesser issues around it".
RBS is seeking in particular to target the London market, where it believes it could sell more mortgages.
The bank is focusing on its retail operations having cut back its huge investment banking business since it was rescued with a £45.5 billion-bailout following the 2008 financial crisis.
But its image has been hit by a computer systems failure last summer and a £3.5bn compensation bill for mis-selling.
Mr McEwan, who joined in August from Commonwealth Bank of Australia, said that despite the taxpayer bail-out, staff still see themselves as RBS or NatWest and not Government employees.
"We do get some comments from customers that 'we own you'," he said. "That will go as quickly as it came, as and when the Government chooses to divest," he said.
He said that RBS's retail business must cut costs.
"For every pound you get you take half of it to run yourself. You know you have to do better than that," he said.
He said it also required changes in customer behaviour, saying many people check their balances online and then phone their branch to check.
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