Tandem, a financial services app looking to build a mobile-only bank, has agreed to acquire the banking arm of British department store Harrods. The exact financials of the deal have not been disclosed but Tandem will gain an £80m cash injection.
Upon completion of the transaction, Tandem will acquire 100 per cent of Harrods Bank – which will operate under the Tandem brand.
The acquisition will help accelerate Tandem’s plans to begin offering savings accounts to its customers before the end of the year, and also help toward the planned launch of credit cards in the next few months.
“Tandem has been built from the ground-up with the help of over 11,000 co-founders, who have helped us shape products and services that really make a difference to their lives,” said Ricky Knox, founder of Tandem. “This acquisition will allow us to scale the business and ensure we can introduce as many people as possible to a new way of banking.”