Shares in the over-50s specialist group, Saga, saw an uptick on Tuesday following the company's announcement that it is in "final negotiations" with FTSE 100 heavyweight Natwest for a banking partnership.
The London-listed firm experienced a three per cent rise in early trading, reaching 176.80p, as reported by .
Ahead of their AGM on Tuesday, Saga confirmed it had "agreed heads of terms" with Natwest. "This partnership would combine Natwest's scale and banking capabilities with our customer insight and marketing strengths, and support our ambition to continue growing our Money business," stated Saga.
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The proposed collaboration would operate alongside Natwest Boxed – a banking-as-a-service platform provided by the lender. A spokesperson for Natwest Group commented: "We have a long-standing partnership with Saga and look forward to continuing to support its growth ambitions."
They added that the next phase of their partnership aims to expand and diversify Saga Money's product range to cater to changing customer needs, in conjunction with Natwest Boxed, promising more details in due course.
Mike Hazell, Saga's chief, expressed that the group was making good progress with its medium-term plans, citing the potential new partnership with Natwest as a prime example.
Older generations left behind as branches shutter
Earlier this year, Hazell outlined his vision for Saga to become the "largest and most-trusted brand for older people in the 海角视频."
Following a 20-year agreement with Belgian firm Ageas' motor and home insurance division last year, Saga has now partnered with Natwest to broaden its product portfolio. This collaboration signifies the next phase in Saga's strategy to enhance its offerings for the older demographic and diversify its product range.
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The rapid closure of high street bank branches has particularly impacted older generations. A recent report from the Financial Conduct Authority revealed that seven per cent of account holders – equating to 3.3 million individuals – do not use online banking, making them susceptible to the effects of branch closures.
This figure rises to 17 per cent among those aged 65 and over, and soars to 46 per cent for those aged 85 and above. In other news, Saga reported a 14 per cent increase in booking revenues and a 13 per cent rise in passenger numbers, reflecting sustained high demand for holidays.
The company's river cruise load factor, indicating how effectively it fills its cruises, climbed to 77 per cent, up from 74 per cent the previous year. Travel booked revenue also saw a boost, growing by 10 per cent to £126m.