Royal Bank of Scotland is closing its global cash management division and referring thousands of businesses to BNP Paribas. The bank is shutting down its Global Transaction Services unit, which at its peak provided 7,000 businesses with cash management services from overdraft facilities to trade finance products. RBS has formed a ‘referral’ partnership with BNP Paribas as an alternative for existing customers. RBS’s decision to close the division is part of a large-scale restructuring unveiled at the start of the year to refocus on UK retail banking after suffering seven successive net annual losses. RBS is pulling out of 25 markets globally, making it untenable for the bank to continue to provide cash management services internationally. However, the bank will continue to offer cash management and trade finance services to businesses based in the UK or Republic of Ireland, as well as overseas companies with “significant links” to the UK.
