New partnership will allow own-branded saving and personal finance offerings
The proposed arrangement, which is expected to be facilitated through NatWest’s “Banking-as-a-Service” arm, NatWest Boxed, aims to enhance the offering of Saga’s underweight Money division by introducing a suite of savings and personal finance products underpinned by NatWest infrastructure.
Shares in Saga rose three per cent in early trading following the announcement, reflecting investor confidence in the partnership’s potential to reinvigorate its fledgling banking operations.
Mike Hazell, Saga’s group chief executive, said the partnership would combine NatWest’s financial scale with Saga’s understanding of its niche customer base. “We are progressing well with our medium-term plans,” he said, describing the NatWest tie-up as a “good example” of that trajectory.
The Money division currently accounts for less than 1 per cent of group revenue, but executives are positioning it for expansion through external partnerships rather than in-house development.
Read more: Saga in giant Ageas tie-up
The announcement came alongside a trading update at Saga’s annual general meeting. The company reported a 14 per cent year-on-year increase in holiday revenues in the first four months of the financial year, with cruise occupancy reaching 95 per cent for ocean vessels and 93 per cent for river itineraries. Passenger numbers rose 13 per cent, signalling a strong rebound in travel demand among its core demographic.
Meanwhile, progress continues on the previously announced divestment of Saga’s insurance underwriting business to Ageas UK. The deal, which includes a 20-year affinity agreement, is on track for completion by the end of July. Ageas will take on underwriting, claims, and servicing for Saga’s motor and home insurance products, allowing the company to retain control of branding and distribution through its broking arm.
Hazell said the changes to Saga Insurance represent a “simplified model” that aligns with the group’s focus on strategic partnerships and debt reduction. Net debt stood at £569.5 million at the end of May, down from £622.7 million a year earlier.
Read more: Saga’s big revenue boost
Saga’s latest moves reflect a broader strategic pivot away from capital-intensive models and towards commercial alliances with scale partners. The company is retaining brand control and customer relationships while outsourcing infrastructure-heavy operations such as underwriting and, potentially, banking.
The prospective NatWest partnership mirrors this model. A NatWest spokesperson confirmed that discussions are ongoing and emphasised the firms’ “long-standing relationship”, adding that the next stage will “broaden and differentiate Saga Money’s product range”.
The banking venture is expected to begin with savings products before expanding into other retail offerings. Further details are anticipated later in the year, pending finalisation of terms.
