Following Tesco’s buying out of RBS from joint project Tesco Personal Finance, the supermarket giant has announced plans to take on the high street banks, with it’s own full service retail bank.
It is the latest move for the supermarket chain to break away from its core grocery market, which it dominates with a 30% share. Tesco is already a major force in DVDs, books and clothes.
“Services are bigger and faster-growing markets than food,” Tesco Chief Executive Terry Leahy said in a statement. “As consumers look to make every pound work harder, it is a good time for Tesco to expand its presence.”
Tesco Personal Finance has been around for just over ten years and already boasts over 5 million customers for products like insurance, credit cards, loans and savings. Tesco will give the finance business a bigger presence in it’s stores, introducing saving products and eventually providing current accounts.
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