National Commercial Bank of Scotland (1959-1969)

Banknotes

Formed by the merger of National Bank of Scotland and Commercial Bank of Scotland in 1959, National Commercial Bank of Scotland occupied a dominant position in Scottish banking with assets of some £300 million and over 400 branches. It immediately embarked upon a vigorous advertising campaign and in 1960 claimed to be the first bank to appoint a public relations officer. It was the first Scottish bank to use electronics for centralised banking - printing cheques with magnetic ink and computerising the administration of standing orders, savings accounts and payment of salaries - and also pioneered investment management services in Scottish banking by providing a portfolio service for clients supported by a staff of investment analysts.

At the same time some unusual additions were made to its branch network with the introduction of a new 'Boat Bank' to serve the Orkney Islands in 1962 and the launch of a Ladies Branch, staffed by ladies for ladies, in Edinburgh in 1964. The latter was the first of its kind in Britain and the second in the world. Also in 1964, in response to the growth of competition from the secondary banking sector, National Commercial Bank and Schroders Ltd joined forces to provide a modern merchant banking service in Scotland, under the style of National Commercial and Schroders Ltd.

Two years later National Commercial Bank acquired the thirty-six branches of The National Bank (established 1836) in England and Wales. During the late 1960s the economic climate was unfavourable for banking, with constraints on bank lending, devaluation of sterling and hire purchase controls encouraging further consolidation. In 1968 negotiations were concluded for the merger of National Commercial Bank of Scotland and The Royal Bank of Scotland, effective from April 1969.