UK grocery retailer Tesco is planning to expand the activities of its Edinburgh-based Tesco Bank.
In the coming months its partnership with Fortis will result in new insurance offerings, and in 2011 it plans to expand its scope in the UK market by adding mortgages and current accounts to its existing offerings of savings accounts, credit cards, and loans.
Tesco’s most recent earnings announcement reports: “We grew the number of customer accounts by more than 200,000 in the first half – to a total of 6.5m across all products. We have achieved good customer growth in our banking products, including 11% growth in personal loan customer numbers and accelerated growth in our credit card customer base, …. and the number of ATMs in our network grew to over 2,900, with 7% growth in transactions.
According to Clive Black, head of research for Shore Capital, quoted in The Scotsman, “Tesco Bank was able to take advantage of the bad feeling created among customers of existing UK banks.
Most banks in Britain don’t have the customer appeal that Tesco has and more importantly the lack of antipathy that Tesco has.”
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