Tesco delays entrance into the current account market
Monday, 06 February 2012 11:01
Tesco Bank is likely to delay plans to roll-out its launch of bank accounts until 2013 to allow the products to be fully developed.
Tesco bank already offers credit cards, insurance and savings products and is close to the top of the best-buy tables for personal loans.
It plans to expand the range of products it offers to customers but says that it is aiming to create a mainstream bank that offers a full service to banking customers but that it is still developing the range of banking products it will offer customers including current accounts.
It had previously been reported that Tesco would launch its banking products this year. However, the implementation of reforms to the UK banking system, including changes to the process of customers switching bank accounts will affect the speed of the launch of Tesco Bank’s current accounts.
A spokesman said: "Our launch timings are not yet confirmed but will be driven by delivering the right product for Tesco customers, as well as the speed of implementation of new industry-wide systems to help customers switch current accounts more easily."
As part of the Independent Commission on Banking report which was published last year, there was a recommendation that a new free redirection service be set up by September 2013 to make it easier for customers to switch current accounts.
Tesco is aiming to become a serious challenger to the rest of the UK’s major banks and will join Virgin Money in becoming a new entrant to the market.
Tesco Bank has the advantage that it is already established in many areas of the personal finance market where it has an estimated 6.5 million customers. It can also promote banking services to its 16 million Clubcard holders.
Tesco launched a range of New Year offers on some of its products in the personal loans, credit cards and insurance markets last month.
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