The digital bank chasing down Starling and Monzo

By Daniel Lanyon on Tuesday 17 July 2018

Digital Banking

A great race for customers appears to be gearing up for fintechs disrupting the banking sector.

Tandem bank has passed 250,000 customers within just two months of reaching 100,000 customers.

Its rapid growth in users, across its cashback credit card, fixed term savers and account aggregating banking app, demonstrates how the digital challenger bank is gearing up to take on rivals such as Monzo, Revolut and Starling which have all seen strong growth in customer numbers in recent years.

While the latter does not publicly state its customer numbers, Monzo recently passed 750k users in the UK while Revolut has at least 1 million UK users and 2.2 million in total around the world.

A failed fundraise last year preceded Tandem's acquisition of Harrods Bank, completed in January. This gave the firm its banking licence and shifted its strategic plan back on track. The acquisition came with 7,000 global customers.

Tandem has had several strands to its growth strategy including the acquisitions of Harrods Bank, and the acquisition of money management app Pariti in March,a deal that brought with it both Pariti’s user base and CEO Matthew Ford and CTO Peter Townsend. This latest milestone comes five months after its first product launch, a cashback credit card.

Tandem are now looking to grow their suite of services with a new card and mortgage products. The Tandem App aggregates all of customers’ accounts, allowing users to view all their accounts in one place.

Ricky Knox, Tandem CEO, says the personalisation of Tandem's banking services will centre on its new product launches.

"We’ve now got 250,000 customers and every single one is different. The future of banking is going to be about knowing your customers and offering them products and services that work for them. It’s also where you start saving them a whole lot of hassle and stress, which is why we started Tandem in the first place,” he said.

Tandem’s ethos and ‘open approach’ to banking resonates with people, Knox adds, and is a key driver of its growth in users.

“Obviously you need great products, that’s a given, but it’s also our vision for a bank that’s got your back that the UK is responding to. It’s one of the reasons we’re outstripping legacy banks when it comes to growth,” he added.

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