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Tesco Bank

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Tesco Personal Finance plc
Company typePrivate
IndustryFinance and insurance
PredecessorTesco Personal Finance
Founded1997
Headquarters
Edinburgh
,
Scotland
Key people
Benny Higgins, CEO
ProductsFinance and insurance
Mortgages
Credit Cards
RevenueIncrease £1.075 billion (2013/14)[1]
Increase £194.6 million (2013/14)[1]
Total assetsIncrease £8.605 billion (2013/14)[1]
Number of employees
2,818 [2]
ParentTesco
SubsidiariesTesco Compare
Websitewww.tescobank.com
Footnotes / references
Tesco purchase of RBS stake completed 2008 Q4

Tesco Bank is a retail bank in the United Kingdom which was formed in 1997, and which has been wholly owned by Tesco plc since 2008. The bank was formed as part of a 50:50 joint venture between The Royal Bank of Scotland and Tesco, the UK's largest supermarket. Tesco later acquired the RBS shareholding, which resulted in the bank becoming a wholly owned subsidiary, and now operates under its own banking licence under the Financial Services Compensation Scheme.[3]

The bank offers a range of insurance, credit cards, loans, savings, mortgages and travel products, and launched a current account in June 2014. A unique selling point of Tesco's banking products is that the bank is able to leverage its large customer base to cross-sell financial services products, as customers can accumulate Tesco Clubcard points when they purchase finance products. Tesco Bank came third in the British Bank Awards, with an average customer satisfaction of 87.8%. [4]

As of February 2014, the bank has around 7 million customer accounts and policies.[5]

History

Prior to the formation of Tesco Personal Finance plc, Tesco had a banking joint venture with NatWest, which ended in February 1997.[6] TPF was formed in July 1997 following the successful launch of Sainsbury's Bank by its main UK competitor, Sainsbury's. The bank was launched as a joint venture with the Royal Bank of Scotland, which processed all its financial transactions.[7] Subsidiary companies of the Royal Bank, such as Direct Line, UKI and Lombard Direct helped Tesco Personal Finance provide insurance products.

In July 2008, Tesco announced that they were buying out the Royal Bank of Scotland's 50% stake in the company for £950 million, and the transaction was completed later that year.[8][9]

In October 2009, Tesco Personal Finance was renamed Tesco Bank.[10]

Services

Tesco Bank provides a range of personal accounts, including current accounts, mortgages, credit cards, loans, savings accounts, insurance and foreign currency exchange. Mortgages were added in August 2012,[11] after briefly offering products provided by First Active in 2004.[12]

The bank confirmed in 2013 that it planned to launch a current account,[13][14] and the first account was launched on 10 June 2014.[15]

Office locations

The bank is registered in Scotland at Interpoint Building, 22 Haymarket Yards, Edinburgh, EH12 5BH. While operating as a joint venture the bank shared its registered office with RBS at St Andrew Square, Edinburgh.

In July 2010 Tesco Bank opened two major offices at Quorum Business Park in Newcastle and a larger one at Broadway One in Glasgow. Since then there has also been an office opened in South Gyle, Edinburgh.

Customer branches

During 2009 Tesco initiated a plan to roll out in-store branches, under the Tesco Bank branding.[16][17] In September 2013, there were in-store branches located in Edinburgh, Coventry and Worthing. [18]

However on 14 May 2016, Tesco Bank closed all three remaining branches with a focus on being a completely online bank.

In addition, there are over 270 Tesco Travel Money Bureaux, an in-store bureau de change, managed by a joint venture with Travelex.[19]

References

  1. ^ a b c "Tesco Personal Finance Plc (Tesco Bank)" (PDF). Investec Capital Markets. 2012. Retrieved 30 May 2013.
  2. ^ "Annual Review and Summary Financial Statement 2012" (PDF). Tesco PLC. 2012. Retrieved 30 May 2013.
  3. ^ "Bank Licence List - Investor Protection Compensation Scheme (Revised July 2013)". Financial Advice.net. 2013. Retrieved 1 December 2013.
  4. ^ "British Bank Awards". Tesco Bank Twitter. 2016. Retrieved 13 May 2016.
  5. ^ "Tesco Bank reaches 7 million accounts". Tesco Bank press release. Tesco Bank. Retrieved 28 March 2014.
  6. ^ Rodgers, Peter (14 February 1997). "Tesco cuts NatWest tie to link with Royal Bank". The Independent. Retrieved 30 May 2013.
  7. ^ "Annual report and financial statements 1998" (PDF). Tesco PLC. 1998. Retrieved 30 May 2013.
  8. ^ "Tesco Pays £950m To Become Bank". Sky News. 28 July 2008. Retrieved 28 July 2008.
  9. ^ Thelwell, Emma; Butterworth, Myra (28 July 2008). "Tesco eyes mortgages and current accounts in plan to take on UK's high street banks". The Telegraph. Retrieved 28 July 2008.
  10. ^ "Tesco Bank to offer current accounts and mortgages". The Telegraph. 6 October 2009. Retrieved 6 October 2009.
  11. ^ "Tesco Bank will offer mortgages". BBC News. 4 August 2012. Retrieved 30 May 2013.
  12. ^ Murray-West, Rosie (4 August 2012). "Tesco Bank finally launches first range of mortgages". The Telegraph. Retrieved 30 May 2013.
  13. ^ "Tesco Bank Creates 300 Scottish Jobs as Lender Eyes Current Account Launch". International Business Times UK. 2013. Retrieved 15 December 2013.
  14. ^ "Tesco's Bank Adds Checking Accounts, 300 Employees". The Wall Street Journal. 2013. Retrieved 15 December 2013.
  15. ^ "Tesco enters battle for current accounts". BBC News. 10 June 2014. Retrieved 12 June 2014.
  16. ^ "In-store 'Tesco Bank' branches planned". Which?. 30 March 2009. Retrieved 30 May 2013.
  17. ^ Bradshaw, Tim (29 March 2009). "Tesco to open bank branches in its stores". Financial Times. Retrieved 29 March 2009.
  18. ^ "Tesco store locator, opening times, and store details". Retrieved 23 September 2013.
  19. ^ "Travel Money In Store". Tesco Bank. 2013. Retrieved 30 May 2013.
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