In today’s rapidly evolving financial landscape, established banks are under increasing pressure to meet customers where they are—on digital platforms. At the Pay360 conference on 25 March 2025, Martin Wallraff, Director at Payments Consulting Network, sat down with Andy Ellis, CEO of NatWest Boxed, part of NatWest Group, to explore how the bank addresses this challenge. The conversation delves into the strategy behind building a cloud-native banking platform, the promise and complexity of embedded finance, and the realities of driving innovation within a large financial institution. Ellis shares insights into NatWest Boxed’s collaborative approach to partnerships, its agile product development process, and the broader vision for the future of banking in the UK.

Read the full interview below. 

Martin Wallraff: Andy, thank you for joining me today. Let us start with an introduction—can you share a bit about your background and what NatWest Boxed is all about? 

Andy Ellis: Absolutely. I started my career in tech, then moved into banking where I led various strategy teams across multiple segments. Eventually, I was asked to lead innovation and ventures at NatWest. My most recent project before NatWest Boxed was building Mettle, a digital bank for small businesses. While developing Mettle, we built our own cloud-native, multi-tenant core banking system called Genie. It allows us to support multiple brands using NatWest’s banking license and balance sheet. 

MW: So, you did not use a third-party provider like Mambu or Thought Machine? 

AE: No, we decided to build our own platform, Genie, and we are very proud of what we have achieved with it. 

MW: What is the core idea behind launching NatWest Boxed? 

AE: We recognised that people now spend a lot of time on digital platforms. Strategically, we wanted to meet them there by integrating financial services into those environments—this is the essence of embedded finance. NatWest Boxed allows us to deliver white-label banking products to large businesses in the UK. We have started with savings and lending products. 

MW: Where do you see NatWest Boxed in five years? 

AE: The main goal is scale. To make a meaningful contribution to NatWest, Boxed needs to grow. We are targeting large customers, and we plan to support different types of credit products beyond what the bank currently offers. The market is evolving, with new regulations and changes in areas like cash usage and BNPL. A lot of companies want to offer financial products under their own brand, and we are helping them do that. It is hard to predict five years out, but scaling is critical. 

MW: Is NatWest Boxed expected to be profitable, or is it more of a strategic initiative for the bank? 

AE: The bank always expects a return on investment. This is not solely profitability but strategic considerations, including building capabilities that can be reused internally. It is not a private equity play—we are not trying to sell it. This is about building something that supports NatWest’s long-term embedded finance goals. 

MW: You recently launched a product with The AA. What is the status there? 

AE: The AA is a major brand, reaching over 14 million customers in the UK. We have launched two main products: an instant access savings account with membership benefits and an unsecured personal loan for larger purchases. Right now, we are focused on activating these offerings and getting everything running smoothly. We expect to bring on one or two more partners of similar size in the near future. 

MW: Are you looking to enter the payments or card space? 

AE: Not immediately. Embedded payments is a crowded and competitive area. Our strength lies in having a balance sheet and strong lending capabilities, so we are starting there. Down the line, especially as we move into point-of-sale lending, we might explore payments and PSP partnerships. 

MW: What are these big brands looking for in a partnership with NatWest Boxed? 

AE: Besides products, they want help with marketing, customer conversion, and aggregator relationships. Some ask us to design the customer journey or provide a white-label app. Others look for support with the financial and commercial planning. We adapt to each brand’s needs.

MW: How do you approach collaboration and the division of responsibilities with those brands? 

AE: I prefer real partnerships where brands are deeply involved. Simply placing their name on our product is not enough—they need to own the customer experience and do as much as they can on the front-end to have real skin in the game. Operationally, we are flexible. Some brands want to handle customer service themselves; others rely on our operations team, which is built to deliver excellent support. 

MW: Are there specific industries you are targeting? 

AE: We mainly work with large UK-based businesses, especially omni-channel ones. We are also seeing growing interest from mid-to-large financial services firms, such as insurance and pension providers.

Martin Wallraff: What is it like to innovate inside a large bank?

AE: I have had a good experience. Large banks are cautious—they prioritise safety and compliance, so things need to be done right the first time. But that also means you get a longer runway and better access to resources and expertise. We do not have to chase short-term funding, and the products are more robust and compliant.

MW: How independent is NatWest Boxed in its operations?

AE: We are operationally independent, including our tech and compliance teams. The only areas where we rely on the broader bank are second-line functions like risk oversight and regulatory reporting. Otherwise, we operate our own team and systems, although we are housed within the bank.

MW: Is NatWest Boxed structured like a venture? 

AE: We used to use the term “ventures,” but the bank really focuses on initiatives that are strategically valuable and work alongside the core. Rather than investing externally, we build internally and bring in partners when needed.

MW: To wrap things up, looking back at your career at NatWest and its predecessors, do you have any standout memories?

AE: I joined RBS through the ABN Amro acquisition, and I was lucky to move straight into a business role running the strategy team in the mid-corporate sector. Even during the financial crisis, RBS maintained a strong customer franchise and has always been very customer-focused, and that has been a guiding principle throughout my career. 

MW: Thanks, Andy. It has been a pleasure speaking with you. 

AE: Likewise—thanks for having me. 

 

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Payments Consulting Network was a media partner of the recent Pay360 event. Andy Ellis was one of the speakers for the conference.

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Author: Martin Wallraff, Director, London, Payments Consulting Network   

Martin brings over 18 years of experience in financial services strategy consulting, both with external consultants and internal strategy teams. For the past decade, he has specialized in payments, fintech, and transaction banking, advising clients on strategy, market entry, product development, and cost management. His extensive international expertise includes leading projects worldwide and residing in various locations across Europe and Southeast Asia. 

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