TESCO will open bank branches in its shops this year as it seeks to take advantage of a loss of public confidence in traditional high-street banks.

 

The retailer expects to open branches, likely to be branded Tesco Bank, in 30 stores by the end of the year. It already offers credit cards, savings accounts and insurance and plans to concentrate on those areas at first, perhaps offering mortgages in due course. It is working on plans to launch a current account, though that would not happen until late next year at the earliest.

 

The move by the retailing giant comes as public anger spills over about the hundreds of million of pounds paid out in bonuses to bankers this year despite several of the biggest banks, including Lloyds and Royal Bank of Scotland, being saved from collapse by taxpayer-funded bailouts.

 

Tesco, one of the most prominent names on the high street, hopes that it can capital-ise on savers’ newfound distrust of traditional banks. The first branches will open next month in Bristol, Blackpool and Coventry, after a trial in Glasgow.

 

Andy Higginson, the chief executive of Tesco Personal Finance, has said that the move into the mainstream banking business will be based on a conservative, “old-fashioned” approach. Tesco bank customers will also be able to accrue loyalty points under its Clubcard programme.

 

The retailer has hired several high-profile executives from the financial services industry to lead its foray into the new business. Sir Terry Leahy, Tesco chief executive, is understood to be keen to take advantage of what he sees as a historic opportunity to open a new bank.

 

http://www.timesonline.co.uk/tol/news/uk/article5993752.ece

Interesting, surely there has to come a point where Tesco take on too much and are stretched too thinly. Also interested to see who will be running Tesco Bank, as their car insurance is underwritten by the RBS Group, and the RBS bank was bailed out by the government.

So basically it will open branches in town centers which focus on the financial side, good idea in my eyes.

This is proof the theory that if major banks fail, nothing will spring up to take their places. Banking is a relatively easy business to get into. It's not like there are patents and machinery you need to buy. You just hire workers who were recently laid off by other banks.

 

Governments that prop up bad banks are only transferring the wealth of taxpayers to the millionaires and billionaires who own & operate them. Banking is now a riskless business - unlike other businesses, a bank cannot go bankrupt.