Tesco Bank has celebrated the opening of its 7 millionth account. The company is making final preparations for its key assault on established high street institutions with the launch of current accounts later this year.
Tesco continues to champion innovation, both inside and out of their stores. Tesco bank is no exception, having secured customers with a new product range, including: mortgages, individual savings accounts and box insurance (a device to monitor young drivers).
Former RBS and Halifax Bank of Scotland executive and current Tesco Bank Chief-Executive, Benny Higgins, has stated:
"Since 2008, we have invested to build a bank for Tesco customers. Our goal is to win the trust of our customers by offering straight-forward, convenient, transparent products which reward loyalty.”
Despite delays over the last few years, Tesco bank has made impressive leaps forward. Over the last six years, Tesco Bank’s deposits have grown by 58% and customer lending is up by 64%. The bank itself calculates that 1 in 8 credit card transactions in the UK are made with a Tesco Clubcard Credit Card. The bank also has a strong web presence, as 86% of their transactions occur online.
The bank plans to launch current accounts by the first half of 2014. Tesco said that the launching of current accounts would be the bank’s ‘final strategic building block.’ Aside from offering a fresh alternative to many of the established high street banks, it will enable them to offer a full range of retail banking services.