Tesco Takes Over Financial Services Portfolio from RBS
In the UK, Tesco has announced that it has reached an agreement with The Royal Bank of Scotland to buy from RBS its 50% shareholding in Tesco Personal Finance Group Limited for £950 million. Tesco says it "will enable Tesco over time to extend its financial services business from a collection of popular financial products to that of a full service retail bank offering more choice, innovation and value to customers, and better returns to shareholders."
Tesco CEO Sir Terry Leahy, commented: “Services are bigger and faster-growing markets than food. As consumers look to make every pound work harder, it is a good time for Tesco to expand its presence.
“Tesco’s clear strategy, set out a little over 10 years ago, has created new service businesses attracting around seven million customers. We have become a trusted supplier of innovative products and services offering great value and I believe Tesco’s special relationship with consumers will enable TPF, as a wholly owned subsidiary of Tesco, to move its business to the next level.
“With a renewed focus on growth in the UK and internationally we can unlock the true potential of Tesco’s retailing services.”
Tesco has exciting plans for the future development of TPF, which will include an increased presence in Tesco’s traditional stores, a wider range of savings products and, possibly in the future, a current account product.
You should also note that Tesco already has an MVNO, Tesco Mobile, with something like 1.2m customers. All in all, a pretty formidable player in the "new" financial services market.
Posted by: Dave Birch | August 01, 2008 at 10:12 AM