The partnership will see the AA expand its range of financial services with products to help people save for their first driving lesson or helping with the cost of an emergency repair
The AA is set to launch instant access savings accounts at the end of March, followed by personal loans, as part of a partnership with NatWest Boxed.
This collaboration will allow the AA to broaden its financial services offerings, potentially assisting people in saving for their first driving lesson or covering the cost of an emergency repair. The AA will also provide a unique product range for its personal breakdown members and insurance customers.
Details of these products will be released when they are ready to go live. The savings accounts will be protected by the Financial Services Compensation Scheme (FSCS), which compensates customers if financial institutions fail.
The AA stated that these savings and personal loans are the first step in a long-term partnership. The new financial products could assist individuals in purchasing a car.
According to previous research conducted by Yonder for the AA, one in three UK drivers (33%) plan to buy a car in 2025, up from 16% last year. Over half (54%) of those looking to buy a car aim to choose a “greener” vehicle this year, such as a hybrid or fully electric vehicle.
Jakob Pfaudler, chief executive of the AA, said: “We are delighted to announce this financial services partnership with NatWest Boxed as we continue to broaden the range of services we offer our members.”
Andrew Ellis, the chief executive of NatWest Boxed, which is supported by NatWest Group and functions as an independent company, said: “We are proud to support the ambition the AA has for its customers, using our technology, balance sheet, operational support, and regulatory expertise to drive future growth.”
Meanwhile, Rachel Springall, a finance expert at Moneyfactscompare.co.uk, said: “It’s great to see the AA reveal its partnership and that it will be launching both an instant access savings account and an unsecured personal loan. More choice in the market is great news overall and there will be loyal members enticed by the new deals once they surface.
“However, on the flipside, it’s always wise for consumers to shop around for any deal, whether it be insurance, savings or loans, just to ensure they are getting the best possible deal. The convenience to use one brand is great to save time, but customers need to make sure this does not come at a cost to them.”
