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Tandem Bank lands £20m injection from Quilam Capital

With profitability all the rage for challenger banks, Tandem is still raising new funds via a mysterious Tier 2 Capital injection.

Alex Mollart

Alex Mollart/Tandem Bank

Tandem has received a £20m investment from Quilam Capital.

The cash, all ‘Tier 2 capital’, the details and structure of which was not disclosed, will be used to boost its ongoing growth strategy. 

As AltFi exclusively revealed last month, Tandem has now reported its first full-year operating profit since its launch in 2014.

Over these nine years, the neobank has pivoted from a direct-to-consumer credit card to positioning itself as a ‘green’ lender, by helping households reduce their carbon footprint.

The past 12 months have seen the bank’s strategy pay off. In 2022 deposits jumped by nearly £1bn from £771m to £1.75bn. lending soared 175 per cent to £1.2bn mainly due to new second-charge mortgages and growing green home improvement lending.

Last year it then saw £71m in income and a £4.5m underlying operating profit.

“Following a transformational 2022, this capital will put extra momentum behind our green lending proposition and allows us to capitalise on a number of exciting opportunities to further grow our business,” said Alex Mollart, Tandem Bank’s CEO.

“Crucially, we’ve found a great partner in Quliam – investors who truly understand our mission to be the UK’s greener bank and are committed to supporting our plans to get there.”

Unlike its fellow neobanks, Tandem has strongly embraced M&A to grow and expand its product suite.

Tandem, which now has 280,000 customers, acquired consumer lender Oplo in January 2022 and Loop Money earlier in 2023 following on from the Allium Lending Group in 2020 and Harrods Bank in 2018. 

It has offices in Blackpool, Cardiff, Durham, London and Manchester, and employs over 500 people. 

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