Tandem can now end the year on a high note after the Bank of England today gave regulatory approval for the challenger’s purchase of Harrods Bank.
The deal will now give Tandem access to a full banking license and the 10,000 customers attached to Harrods Bank, as well as the bank’s mortgage and savings books. According to Tandem, the purchase will also come with a “significant capital injection”.
“This is a major step forward in our plan to acquire Harrods Bank,” said Ricky Knox,Tandem’s CEO and Founder.
“When the deal is finally done early in the New Year, it will transform Tandem into one of the UK’s leading digital challenger banks.”
Tandem announced their intention to purchase Harrods Bank in August, subject to regulatory approval from the Bank of England's Prudential Regulation Authority and the Financial Conduct Authority, after it faced a series of setbacks earlier on in the year.
In May, the platform rebranded itself in changing its name from Tandem Bank to Tandem Money, after it was forced to cancel its planned savings accounts when a £29m investment fell through.
The investment was part of a £35m deal with Fraser Financial Services, which invested the first £6m in December of last year. The cancellation of the second tranche of the deal was attributed to uncertainty over whether China’s State Administration of Foreign Exchange would approve the deal.
However the rebrand effort appears to have been reversed in light of today’s decision, as the challenger bank is now going by the name of Tandem Bank again.
The app-led banking service is currently rolling out a travel and cashback card, as well as relaunching construction of its planned savings products from earlier this year.
Knox added, “This is an exciting time for Tandem. We have a growing customer base, a range of innovative products, and a commitment to make our customers’ lives richer by saving them money and taking away their financial stress.”
