Tesco launches bank

Talk of Tesco opening its own bank started with rumours of Virgin and Tesco to open banks last year, and this week, the supermarket giant finally did it. In fact, we debated earlier this year what mortgages from Tesco might mean for the industry, but for those who have been waiting with bated breath, they will have to wait a little longer because Tesco Bank has said it won’t be doing either current accounts or mortgages till 2011.

The Tesco Personal Finance name has been binned as bosses told the media:

“We wanted a name that does what it says on the tin.”

Tesco Bank will be offering loans, credit cards and insurance as Tesco Personal Finance has done since 1997, and last year Tesco bought out its partner, the Royal Bank of Scotland.

So far this year, Tesco has made good profits and signed an additional million customers since the relaunch of its Clubcard in May.

Finance director Laurie McIlwee said Clubcard had 17 million users. He added: “Customers who were previously more promiscuous are staying loyal. They’re shopping more regularly with us and buying bigger baskets, which is what we hoped would happen.”

So we still wait to hear about mortgages from Tesco!



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