Royal Bank of Scotland officially launched its digital bank Bo´, creating its own challenger bank that will be in direct competition with Revolut, Monzo, N26 and other digital banks. 

Bo´, which operates as a cloud-based bank under RBS's NatWest brand, will provide customers with a mobile banking app and bright yellow Visa card, and is designed to help users better manage their spending.

"In this digital contactless age, people need support managing their money more than ever," Mark Bailie, chief executive officer of Bo´, said in a release from the bank. "It's all too easy to lose control." 

"Our data suggests that three quarters of people in the U.K. are living financially unsustainable lives," he said. "We want to help change this."

The bank cited anonymized data from 2.6 million NatWest customers that was analyzed in July. The data showed that half of those customers spend everything they earn, while one fourth of them spend more than their income. The data also showed that for people earning less than 100,000 pounds ($128,900) there is no link between income levels and the amount of money they save, meaning the issue regarding the lack of savings is behavioral. 

A spokesperson said the digital bank has about 3,500 current users and growing. The mobile app is available for download on Google Play and the App Store.

Cover image: Bo´.