The AA has announced plans to expand its financial services, offering instant access savings accounts from the end of March, followed closely by personal loans. The move marks the first step in a long-term partnership with NatWest Boxed, a subsidiary of NatWest Group, which will provide the technology, balance sheet, and regulatory expertise to support the AA’s ambitions.
The partnership will allow the AA to offer new financial products to its members and insurance customers, helping them save for driving lessons, cover emergency repairs, or even finance a vehicle purchase. The AA has said further details on the products will be released closer to their launch.
FSCS protection and competitive offerings
The upcoming savings accounts will be protected under the Financial Services Compensation Scheme (FSCS), ensuring customers’ deposits are safeguarded in case of a financial institution failure. The AA has a history of offering competitive financial products, having previously provided a “best buy” easy access account.
Commenting on the launch, Jakob Pfaudler, chief executive of the AA, expressed enthusiasm about the expansion into personal finance:
“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.”
Meanwhile, Andrew Ellis, chief executive of NatWest Boxed, emphasised the strength of the collaboration:
“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.”
Helping drivers with car purchases and repairs
The introduction of savings accounts and personal loans is expected to benefit UK motorists, particularly those planning to buy a new car.
According to a survey conducted by Yonder for the AA, a third of UK drivers (33%) plan to purchase a car in 2025, a significant increase from 16% in the previous year. Additionally, over half (54%) of prospective buyers intend to opt for a hybrid or fully electric vehicle, reflecting the growing trend towards greener transport options.
Given these trends, the AA’s financial products could assist customers in securing financing for vehicle purchases, repairs, and other driving-related expenses.
Expert opinions and market competition
Industry experts have welcomed the AA’s expansion into financial services. Rachel Springall, a finance expert at Moneyfactscompare.co.uk, noted that the AA has previous experience in the personal finance market and could offer competitive deals:
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“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.”
However, she also advised consumers to remain vigilant when choosing financial products:
“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 of using one brand is great for saving time, but customers need to make sure this does not come at a cost to them.”
A strategic expansion for the AA
The AA’s move into savings and loans represents a strategic expansion, allowing the organisation to diversify beyond its core breakdown cover and insurance services. By leveraging NatWest Boxed’s financial infrastructure, the AA aims to provide a seamless and competitive banking experience for its members.
As the UK market for vehicle financing and green transport solutions continues to grow, the AA’s financial services offering could play a crucial role in helping consumers manage their motoring costs while adapting to the evolving automotive landscape.
With further product details set to be announced in the coming weeks, the launch of AA-branded financial services could mark the beginning of a new era for the organisation, positioning it as a key player in the UK’s personal finance sector.
