NatWest’s Sehgal on leveraging a first-mover advantage

The marriage between technology and human insight has been a key driver behind NatWest – the bank ranked as number one in cash management in the UK, overall and for technology, according to feedback from clients who participated in the Euromoney Cash Management Survey 2024.

Ritu Sehgal, head of transaction services and trade, knows many banks speak of customer-centricity, but under her leadership, this philosophy has been put into practice in a way that stands out. A tailored, specialised service is reflected on how the bank has structured its teams: building a hybrid model that combines the efficiency of automation with the empathy and expertise of humans.

“We haven’t let go of what a hybrid ‘human versus technology model’ looks like,” Sehgal explains. “We invest heavily in tech, but we are also very mindful of keeping a dedicated service model in place. Clients aren’t just numbers; they are partners. This allows us to adapt and provide client need-led solutions – especially as clients move through different stages of their journey on automation and scale.”

NatWest has developed sector-specific sales teams. This tailored approach allows the bank to better understand the unique challenges that different industries face – from real-time payments for the B2C segment to API-driven solutions for financial services – and respond with precision.

“By having specialised teams for different sectors and products, we are able to create a client view that is holistic, driven by the changes in the payments ecosystem at an end-consumer behaviour level,” Sehgal says. “The model we’ve adopted doesn’t just push products; it’s consultative and centred around solving specific client challenges.”

One of the standout features of NatWest’s transformation has been its willingness to be a first mover in certain areas. The bank was the first to launch APIs for agency banks, a strategic move aimed at driving industry-wide adoption by providing the tools to other banks, which in turn meet the needs of their corporate and retail clients.

The initiative empowered other banks to integrate with real-time payment rails, thus enhancing the customer experience. This approach extends beyond product offerings – NatWest has actively shared its technology with fintechs, working collaboratively to drive broader industry progress.

“We were the first bank to launch variable recurring payments (VRPs), both sweeping and non-sweeping,” Sehgal says. “We’re actively working with regulators to increase VRP adoption and open banking as a whole. We believe it’s not just about us; it’s about building the entire ecosystem. A number of large payments fintechs use our VRP technology”.

NatWest embraces cross-industry collaboration, through partnerships with fintechs and payment platforms. “We have fintechs as clients, partners and competitors, and we enjoy and leverage all these relationships,” Sehgal says. “It helps us to drive the adoption of new technologies across the industry. By sharing our tech, we help fintechs scale quickly and, in turn, we learn and adapt faster.”

Sehgal believes that data will play a pivotal role in defining the next phase of transaction banking, particularly in how it helps banks build more integrated client ecosystems. “Data isn’t just about tracking payments,” Sehgal explains. “It’s about building a more comprehensive view of the customer’s needs – whether that’s in payments, trade finance or capital markets. By leveraging data, we can offer personalised solutions and provide clients with insights that drive their business forward.”

This data-driven approach to banking extends to a growing focus on decarbonising supply chains. In a unique partnership with Tesco, NatWest has helped finance the decarbonisation of 1,500 Tesco farms, showcasing the bank’s commitment to sustainability and its ability to apply digital tools to solve real-world challenges.

“We’ve done some ground-breaking work in decarbonising supply chains,” Sehgal adds. “Technology and data will play a massive role in transforming industries, and we’re already seeing how it can help businesses align with sustainability goals.”

In an industry undergoing rapid transformation, Sehgal recognises the importance of reskilling the workforce to meet the demands of an increasingly digital future.

“We’ve created a culture where people from both traditional transaction banking and fintech backgrounds work side by side,” she says. “The digital literacy and technological understanding that fintech professionals bring is essential in helping us spot emerging trends and better serve our clients.”

The constant upskilling of the workforce also allows the bank to maintain its competitive edge while staying true to its commitment to client service.

Sehgal’s vision for the next few years is one where NatWest continues to lead the way in technology adoption while keeping a client-first ethos.

“Our roadmap for the future is focused on driving deeper understanding of client needs, harnessing new tools like OpenAI, leveraging the power of data and continuing to innovate,” Sehgal says. “The future of transaction banking is not just about keeping pace with technology – it’s about using that technology to create real value for our clients and the broader industry.”