House of Fraser, the U.K. department store operator, is making a £35 million investment in an app-only bank as a way to give shoppers a banking tool and payment means.
According to a report, House of Fraser has worked with Tandem to create the app-only banking service. Tandem received a banking license in 2016 and is one of a growing number of digital-only banks that are taking on the traditional banks in the U.K. According to the report, Tandem raised greater than £30 million in funding last year, which included an investment from eBay Cofounder Pierre Omidvar. The report noted House of Fraser, which was bought by China’s Sanpower in 2014, has a loyalty and credit card offering with NewDay.
We’d love to be your preferred source for news.
Please add us to your preferred sources list so our news, data and interviews show up in your feed. Thanks!
Tandem and the U.K. aren’t the only ones that are focused on digital-only banks. Early last year, Canada’s Equitable Bank rolled out its new digital-only bank, EQ Bank, with a modest goal in the first year of having 10,000 customer sign-ups. In less than two months, it had 15,000 customers. The positive consumer response perhaps wasn’t a complete surprise, considering the initial interest rate for the savings account was 3 percent. The challenge for the bank will be remaining competitive when the interest rate is ultimately dialed back and the offering itself — namely its features and user experience — need to steer the ship.
Add as Preferred Source
