RBS share price: Head of Mastercard UK to join bank as director of payments

on Oct 15, 2014
Updated: Oct 21, 2019
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iNVEZZ.com, Wednesday, October 15:  Royal Bank of Scotland Group Plc (LON:RBS) has persuaded Mastercard’s UK boss, Marion King, to join the group in the role of director of payments, Sky News has reported. RBS is counting on the new appointment to improve the bank’s payment systems, which have been subject to severe criticism after a series of serious failures.

As of 13:18 BST, RBS’s share price was trading 1.17 percent down at 353.60p.
**New appointment**
Marion King, who resigned from her position as president of Mastercard UK and Ireland this week, will be joining Royal Bank of Scotland as group director of payments, Sky News reported today.
King, who will be reporting to RBS’s chief operating officer Simon McNamara, will be responsible for implementing the group’s strategy for greater automation of its payments operations. The appointment occurs at a time when British banks are under increasing pressure to update their IT systsems.

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King’s duties will include managing the development of new payment platforms such as mobile apps and contactless payments as RBS has said it was aiming to become the leading bank for trust and advocacy among customers by 2020.
RBS has been hit by a sequence of system-wide IT failures in the past. The bank experienced a serious breakdown of its systems in the summer of 2012, which resulted in millions of customers trying unsuccessfully to withdraw their money. In December, hundreds of thousands of customers were unable to use their debit and credit cards during one of the busiest shopping days of the year due to a computer glitch. RBS chief executive Ross McEwan blamed inadequate IT investment on his predecessors’ watch for the company’s computer failure. ()

In its annual results last year, the group said it was investing heavily in computer infrastructure to modernise its systems.
**Partnership with US tech group**
Today’s news came after on Monday RBS reached an agreement with the US tech group Taulia to offer its corporate clients discounting with e-invoicing. The move will enable buyers to offer early payments to their suppliers, who would have invoiced them electronically, in exchange for a discount, whose rate is calculated dynamically.

Last month RBS signalled that it would invest more than £1 billion to enhance services for its commercial and corporate customers. ()

**Analysts on RBS**
According to the Financial Times, as of October 10, 2014, the consensus forecast amongst 65 polled investment analysts covering Royal Bank of Scotland Group has it that investors should hold their position in the company. This has been the consensus forecast since the sentiment of investment analysts improved on January 22, 2014.
The 25 analysts offering 12 month price targets for the FTSE 100-listed bank have a median target of 350.00p, with a high estimate of 500.00p and a low estimate of 250.00p.
Analyst Ratings Network reports that the RBS stock currently has a consensus ‘hold’ rating and an average target price of 337.52p.
**As of 13:18 BST, buy RBS shares at 353.70p.**
**As of 13:18 BST, sell RBS shares at 353.30p.**

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