Clydesdale’s digital-only account could eclipse its high street offering

The boss of Clydesdale and Yorkshire Banking Group (CYBG) has said the lender’s digital business may overtake its high street brands in scale as it leads an online push.

Chief executive David Duffy was referring to digital brand B, which has collected more than 170,000 customers and £1.6 billion in deposits since the digital-only current account launched last year.

Mr Duffy told the Press Association it was “certainly an option” for B to eventually become bigger than traditional Clydesdale and Yorkshire brands as the group invests heavily in open banking and its digital offering.

“We already have regional brands, but B is geographically neutral and more focused on millennials,” he added.

CYBG is considering a formal takeover of Virgin Money, having recently revealed talks over a potential £1.6bn deal.

Sir Richard Branson’s Virgin Money is also looking to become a player in digital banking, having spent £38.3 million last year developing an apponly offer, adding to the rationale behind a tie-up between the two.

Virgin Money’s digital offering is expected to launch in the second half of the year.

The potential tie-up comes as challenger banks as they look to gain scale to take on the major lenders.

Mr Duffy said: “The digital capabilities of the challenger players is helping set them apart from their larger counterparts.”