You are here: Home - Saving & Banking - News -

Tandem completes Harrods Bank buy out

0
Written by: Paloma Kubiak
11/01/2018
Digital challenger Tandem has today completed its Harrods Bank purchase after receiving approval from the regulators.

The Bank of England’s Prudential Regulatory Authority and Financial Conduct Authority have given the green light to crowd-funded, digital banking firm Tandem to buy Harrods Bank.

This means it has gained a full banking licence, access to £80m of capital and over 10,000 new accounts. In total, the deal brings Tandem a £375m mortgage book and more than £400m of deposits.

Tandem confirms Harrods customers and their accounts are unaffected and they do not need to take any action. All account numbers will remain the same and all deposit accounts and mortgages will be “serviced as usual”, it said.

Ricky Knox, CEO of Tandem, said: “Building a good bank is incredibly important to us. And the acquisition of Harrods Bank means we can now confidently develop innovative services in line with our mission to make our customers’ lives richer.

“With our new banking licence, our banking app and our fast growing range of services, 2018 is going to be a great year for Tandem.”

Tandem first announced in August 2017 that it had struck a plan to acquire 100% of Harrods Bank and it hoped it would receive regulatory approval by the end of the year.

Tandem will be able to offer deposits because Harrods Bank already has a full banking licence. Given a nod from the regulator, Tandem will be able to move from an app tracking spending, credits and financial services switching, to one offering a range of banking services.

Harrods Bank was put up for sale in April 2017 and has made more than £13m of losses over the last two financial years while lending around £200m in 2015 and 2016.

It lost £4.9m in 2015 and £8.4m in 2016, with analysts suggesting much of its value was attached to its prestigious name.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
Investor sentiment climbs to new highs

Investor sentiment has hit its highest level in almost a year, fuelled by low volatility in equity markets and tax...

Close