Losses reduced at Tandem Bank as switch to "green digital bank" bears fruit

By John Reynolds on Monday 3 October 2022

Alternative LendingDigital BankingSavings and Investment

Losses were reduced and revenues were up at Tandem Bank in the year ending December 2021, as its switch to become a "green digital bank" looks to be paying dividends.

Losses reduced at Tandem Bank as switch to
Image source: Susie Aliker and Alex Mollart/Tandem.

Tandem Bank saw losses reduced and revenues boosted in 2021, as its switch to become a “green digital bank" looks to be showing early signs of bearing fruit.

Losses at Tandem Bank came in at £17.9m in the year ending December 2021, compared to  £19.1m a year earlier, while revenues totalled £14.8m, compared to £11.4m the year previous.

Tandem, founded in 2016, set out to build a digital bank, but its plans were scuppered by a failed funding round.

It acquired Harrods Bank to secure a banking licence, launched a range of credit cards, and then cut them after a switch to subscription pricing flopped.

The bank has now pivoted to be a “green lender” with mortgages and home improvement loans—following its acquisition of Allium Lending Group, buying up £44.6m in unsecured consumer loans from Honeycomb and acquiring a £100m mortgage book from Bank and Clients.

Earlier this year, it snapped up Oplo and its £1.2bn loan book of secured and unsecured consumer loans.

In its results, Tandem said revenues were boosted by its purchase of Allium Lending Group and the growth in its core assets.

Losses, meanwhile, were reduced by Tandem’s switch to residential mortgage loans as well as reducing costs across the bank.

As of the end of December 2021, Tandem reported £436.8m of loans and advances to customers, compared to £394.6m the year previous, largely attributed to growth in loans originated via Allium Lending Group.

Customer deposits came in at £771.2m, compared to £495m the year previous, while total assets stood at £853.7m compared to $596m the year before.

Tandem said it had now more than £250m of green lending, which made up a quarter of its balance sheet, leading to a cut of 12,000 tonnes in CO2 emissions.

Looking ahead, Tandem said it continues to monitor the impact of the cost of living crisis on its customers and the impact on its profitability.

It said: "The directors are confident that even in the event of an extreme downturn, management actions can be taken which could include reducing origination volumes to ensure we operate without our regulatory requirements at all times.”

Just days ago, Tandem CEO Susie Aliker said she was stepping down after 18 months in the role. She is to be replaced by deputy CEO Alex Mollart.

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Companies in this Article:

Tandem

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