Barclays buys Tesco Bank: what does it mean for customers?
- The high street giant is set to take over most of Tesco Bank’s business
- Tesco Bank has five million customers in the UK
- That’s what it means for Tesco Bank borrowers, savers and insurance customers
Barclays has just unveiled a £700m deal to buy most of Tesco Bank, leaving the supermarket bank’s five million customers wondering what the future holds for them.
Tesco Bank offers its customers a wide range of financial products, including savings, insurance, credit cards and loans.
But while some Tesco Bank will be owned by Barclays Bank If the deal goes through, the main bank will not take over everything and Tesco will retain some parts of its finance business.
Here’s everything you need to know about the deal and how it affects Tesco Bank customers.
Big money: Barclays owns the retail arm of Tesco Bank, including loans and savings
Which parts of Tesco Bank will Barclays take over?
The deal has not yet been completed, and is awaiting regulatory approval, which will come in the second half of 2024.
Simply put, Barclays plans to acquire the retail arm of Tesco Bank. This means anything related to credit cards, savings and loans.
A Barclays stock exchange announcement said the bank wanted to “enter into an exclusive long-term strategic partnership with Tesco Stores Limited for an initial period of 10 years.”
This will allow it to market and distribute credit cards, unsecured personal loans and deposits using the Tesco brand, as well as explore other opportunities to provide financial services to Tesco customers.
What does Tesco hold?
Tesco keeps everything else. This means all travel, pet and car insurance, as well as travel money, gift cards and ATMs, as well as Tesco Mobile and the Clubcard scheme.
Are there any immediate changes?
No, Barclays is not closing or selling any part of the business it bought from Tesco.
As far as Tesco Bank customers are concerned, nothing will happen to change the financial deals they have entered into.
These will be operated by Barclays, but still bear the Tesco badge. Barclays will also take on 2,800 staff at Tesco Bank as part of the deal.
The initial agreement between the two companies lasts for at least 10 years.
The news follows the unveiling of plans by rival supermarket Sainsbury’s last month Gradually divest its banking arm And focus on its supermarket business.
What has Tesco Bank already sold or discontinued?
Bank owned supermarket It sold its mortgage operation to Lloyds Banking Group Compared to 3.8 billion pounds in 2019.
Tesco Bank also closed all its current accounts In November 2021.
What did Barclays say?
CS Venkatakrishnan, CEO of Barclays Group, said: “Barclays is a leading consumer bank in the UK. This strategic relationship with the UK’s largest retailer will help create new distribution channels for our unsecured lending and deposit businesses.
“We are able to bring our partnership card expertise developed over decades in the US to enhance the highly successful Tesco Clubcard loyalty programme.”
What did Tesco Bank say?
Ken Murphy, Tesco Group CEO, said: “Tesco Bank is a strong business that has helped millions of loyal customers manage their money for more than 25 years.”
He added: “As we look to the future, our aim is to be the best financial services provider in the UK, with this strategic deal and partnership with Barclays unlocking greater value for clients and our business.”
“By working with one of the UK’s leading banks, we can offer customers new and innovative offers, which will continue to benefit from Tesco Clubcard’s unique vision and digital capabilities.”
(tags for translation) Daily Mail