Launching today, the B proposition is built around an app, available for free for the first 12 months, then for £2 a month. As well as allowing users to sweep cash between current and savings accounts and make payments at the touch of a button, B offers multiple savings pots, tagging and tracking of spending and tailored messages, and hints and tips to help customers. Dedicated customer support is available via the app, through a call centre and across the Y&B branch network

Designed and developed following customer feedback, and in collaboration with London-based design firm Market Gravity, B is intended to appeal to the new tech-savvy generation of banking customers that are the target base of a host of UK banking startups

Peter Sayburn, co-founder and CEO of Market Gravity, says: “We are seeing the emergence of new entrants to the sector and it’s great to see an established banking organisation become a new challenger and bring their offering into the digital age."

The launch of B represents the first major initiative for the Banks since the company’s IPO in February this year and signals the importance of innovation to its future growth strategy.

In March 2014, the former NAB subsidiaries announced plans to close 28 bank branches and invest £45 million in "improving services" after experiencing a 30% drop in high street footfall over the previous three years.

Helen Page, customer experience director at Clydesdale Bank and Yorkshire Bank, says: “B represents a challenge to other banks and is based around an app that has been extensively tested and trialled - we know it’s what people want. As part of our background research, over 10,000 people told us what they wanted from a bank; to take the hassle out of money and make life a bit easier. We listened, learned and took their advice throughout the process to create B - a product designed by customers for customers.”