Tesco to become a high street bank
Jul 29, 2008 | Comments 0
Times are hard, but Tesco seem to be finding ways to win during the credit crunch, they are now going to become a high Street bank, why not pay it in the bank in one hand then hand it back over at the grocery check-out. Sounds like a good plan for Tesco but the banks facing difficult times without Tesco making it worse.
Tesco are also working on Tesco Internet, which will allow customers to bank and do their weekly shop at the same time. They have moved Andy Higginson to run the operation, which means serious business. The media were given a very laid back performance from Higginson yesterday, it’s said that there is such a large area of new growth for Tesco that they must be using the under promise over deliver tactic.
Tesco paid Royal Bank of Scotland £950m of shareholders money to get out of the joint personal finance venture, Tesco main aim is to increase its retail services profits from £400m to £1bn mainly powered by banking, which is currently about half the £400m figure.
Just when banks thought it couldn’t get any worse, Tesco has decided to make the credit crunch that bit more painful by deciding to turn its full attention to making the grocer a new power in high street banking.
Tesco are seizing the opportunity to strike when the iron is hot, when the general public has a low opinion of the high street banks.
They will probably create a new current account and some cracking deals on mortgages once the funding outlook improves, as well as some decent tax-free saving products. With the Tesco Clubcard being a wealth of information regarding their customers, they will already be halfway there to build their banking customer base, and what a great time to buy a bank out when the banks values are at a low point.
Filed Under: Business News