By Ryan Weeks on 13th March 2018
Shortly after the acquisition of Harrods Bank, the newly-licenced Tandem makes another acquisition.
Neo-bank Tandem has acquired money management firm Pariti. Pariti helps users to get on top of their finances by connecting to their bank accounts and helping them to control their spending. It also provides refinancing options to users with expensive debts.
Speaking to AltFi, Matthew Ford (pictured), who will be joining the Tandem team, called the deal a “natural fit” for both businesses. He said that the mission of both firms is “almost identical”, namely, to provide a better solution for customers who are fed up with old school banks.
Pariti has 95,000 registered users. Over the years it has partnered with a couple of marketplace lenders (Zopa and Lendable) to provide more affordable loan options for those users. The plan now is for Pariti to be integrated into the Tandem offering.
Tandem is the UK’s newest licenced bank, having acquired Harrods Bank in January. The neo-bank’s CEO Ricky Knox told AltFi at the time that Tandem was in the process of raising money – from both new and existing investors – when it was approached about the Harrods deal. The details of this fundraise remain unclear.
Asked about how the Pariti app and the credit card product could work together, Ford noted the breadth of Tandem’s activities. “If you think about Tandem’s long-term road map – Tandem has the most ambitious roadmap in the world,” he said.
However, he added that the plan was to build “a fair card”. He sees the Tandem acquisition as very exciting because Pariti will now be involved in servicing product needs, where previously it was more about providing insight. “It doesn’t change the mission in any way, in fact it enhances it,” he added.
Now in its sixth year, the AltFi London Summit returns on 18th March 2019 to 155 Bishopsgate. Last year proved to be a crucial turning point for the key players building the future of finance. Leading platforms launched oversubscribed IPOs, digital banks proliferated and mainstream financial institutions started their own disruptive propositions. With 2019 certain to be another landmark year, more questions will be asked by regulators with investor interest in disruption also poised for more rapid growth.