The UK economy is witnessing a surge in optimism, particularly among mid-market firms, which are proving to be a powerhouse for growth, according to the latest NatWest UK Business Growth Tracker.
Additonally, NatWest Group is expanding its innovative reach through a strategic partnership with Saga Money, leveraging its banking-as-a-service platform, NatWest Boxed, to deliver various financial products for the over-50 demographic.
These developments underscore NatWest’s role in fostering economic progress and financial inclusion across the UK.
The latest NatWest UK Business Growth Tracker reveals that mid-market businesses—those employing more than 249 people—are experiencing their fastest growth in business activity in 11 months.
The tracker, utilizing the industry-standard Purchasing Managers’ Index (PMI), reported a significant jump from 51.5 in May to 55.6 in June, marking the strongest expansion since July 2024.
This growth, driven predominantly by the service sector, contrasts with the modest national output increase of 52.0, highlighting the outsized contribution of mid-market firms to the UK economy.
Improved demand, stronger sales pipelines, and new product launches have fueled this upturn, particularly in the service sector, which recorded its quickest activity increase in 15 months with an index of 57.3.
However, small and medium-sized enterprises (SMEs) continue to face challenges, with subdued demand and rising costs impacting their margins.
NatWest’s focus on mid-market companies is further evidenced by the establishment of the Mid-Market Growth Council, which aims to advocate for policies that support these firms.
Despite challenges such as wage pressures and global economic uncertainties, including US tariffs, mid-market firms remain a beacon of optimism, with business confidence improving since April’s 29-month low.
In parallel, NatWest is enhancing financial services through its banking-as-a-service arm, NatWest Boxed, which has entered a partnership with Saga Money to offer savings products for customers over 50.
Announced recently, this collaboration leverages NatWest Boxed’s technology and Saga’s deep understanding of the over-50 market to deliver accessible financial products tailored to this demographic’s needs.
The partnership aims to combine NatWest’s operational expertise and compliance capabilities with Saga’s brand to provide savings products with good customer service.
This initiative aligns with Saga Money’s ethos of catering specifically to older customers, ensuring they have financial solutions that support their savings goals.
NatWest Boxed’s platform, built on a modular, API-driven, and cloud-native architecture, enables integration of financial services into non-financial brands, a key trend known as embedded finance.
This partnership follows a collaboration with The AA, announced earlier in 2025, to provide instant savings accounts and personal loans.
These developments reflect NatWest Group’s strategy to enable economic growth and financial inclusion.
By supporting mid-market firms through data-driven insights and advocacy, and by partnering with brands like Saga, NatWest is hoping to position itself as a partner in the UK’s economic landscape.
As mid-market businesses drive growth and enhance financial solutions reach underserved demographics, NatWest’s efforts are focused on paving the way for a more inclusive digital economy.