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NatWest Group (LON: NWG) share price has been in decline over the past few weeks, mirroring the struggles of other UK banks. Since the beginning of this month, bank shares have been hit hard as global banking concerns intensify.
The primary concern for NatWest shareholders stems from recent bank failures in the US, which have sparked fears of a broader contagion. These worries have extended to Europe, where Credit Suisse narrowly avoided collapse, thanks to a government-brokered takeover by UBS Group. However, the repercussions of this event on the global banking system may be felt for months.
In an effort to streamline processes like e-document signing and digital onboarding, NatWest Group has partnered with identity service provider OneID. This collaboration will introduce an embedded digital ID solution for customers via NatWest Group’s Bank of APIs. The new identity solution will also allow users to verify their age when accessing restricted services, such as car rentals.
Last week, NatWest Group’s share price hit new year-to-date lows, reaching 237.2p. After a brief recovery above the 200-day moving average, the shares are experiencing another downturn. On Tuesday, shares of NatWest Bank’s parent company opened slightly higher but struggled to gain momentum, trading at 260p by press time after showing minor gains.
On the daily chart, NatWest shares are currently retesting the 200-day moving average, a key indicator often considered a crucial support level by many traders. The price is hovering just below this important threshold. If the stock closes below this level, it could trigger a further decline, potentially revisiting the March low of 237.2p.
If the price breaks below last week’s low, the outlook for NatWest Group could turn very bearish. In such a case, the shares may fall below 200p, possibly retesting their March 2022 lows of 196.9p.