Zurich Financial and Bank of Scotland have formed a 50/50 joint venture partnership to provide banking services and loan products to the Swiss insurer's 4.5 million UK retail customers.
The joint venture, which is planned to become operational later this year and is subject to regulatory approval, will offer bank accounts, personal loans, mortgages and credit cards under the Zurich brand. It also plans to provide banking services through Zurich's personal financial portal which will launch later this summer.
Zurich recently delayed the launch of its proposed UK Internet banking operation after witnessing problems at other similar ventures. The online channel will provide Zurich's customers with banking and insurance products, as well as a range of services such as share portfolio valuations and market news.
Sandy Leitch, chief executive of Zurich Financial Services (UKISA), describes the Royal Bank of Scotland agreement as a "significant step towards the launch of our personal financial portal in the UK this summer".
Distribution will also be through Zurich's existing channels, which include the Allied Dunbar Franchise Network and Eagle Star Direct.