Our Story
We are one of the oldest banks in the UK and our extraordinary heritage also encompasses the histories of hundreds of constituent companies.
1971 to 1990
- Offshore and closer to home
- During the 1970s The Royal Bank of Scotland flourished. We played a leading role in lending to the new breed of businesses bringing oil and gas ashore from under the North Sea. In 1972 we became the first British clearing bank to offer a house purchase loan scheme to customers.
- Harnessing new technologies
- In 1973 RBS was the first Scottish bank to have all branches linked online to a head office computer. In 1977 our fixed-amount cash machines were replaced by Cashline, a network of more modern-style ATMs.
- New products and services for customers
- South of the border our English constituent Williams & Glyn's Bank was equally enterprising, launching a new kind of savings plan and insurance scheme and introducing free banking for personal customers whose accounts remained in credit. In 1974, it opened a branch in Piraeus, Greece - now a hub for our significant ship finance operation.
- High streets and highways
- In 1985 the Group merged Williams & Glyn's Bank with The Royal Bank of Scotland to create Britain's first truly nationwide high street bank.
- We also saw the need to broaden our activities and boldly backed a novel proposal to sell motor insurance over the telephone. Launched in early 1985, Direct Line became a major success, recognised throughout Britain thanks to its adverts featuring a red telephone on wheels.
- American and European alliances
- Determined to reduce our dependence on the performance of the UK economy and the strength of sterling, we bought an American bank in 1988 - Citizens Financial Group. Meanwhile, in Europe, we announced a pioneering alliance with Banco Santander of Spain, and at home launched a new joint venture life assurance company, Royal Scottish Assurance. With our growth strategy rebalanced and strengths diversified, RBS had built a springboard for further expansion.
- How old is the Royal Bank?
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The Royal Bank of Scotland itself was established by royal charter on 31 May 1727. Some of our constituent businesses are even older, dating back as far as the 1580s. You can learn more about them at RBS Heritage On-line.
- Is it true that Scottish banknotes are not legal tender?
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Yes, it is - but Bank of England notes aren't legal tender in Scotland either. Officially, the phrase 'legal tender' means money that a person is obliged to accept if offered it in payment of a debt. Under Scottish law, that does not include banknotes, which are classified as 'legal currency' but not 'legal tender'.
The only historical exception was during the two world wars, when as a temporary measure the government made banknotes legal tender in Scotland, as a way of reinforcing people’s trust in them. This was important in a time of shortages, when the government needed to be sure that people would not hoard gold.