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Tesco plans 30 in-store banks

Monday, 30 March 2009

Writes Hazel Cottrell
hazel.cottrell@consumerchoices.co.uk

Fancy picking up a credit card with your groceries? You will soon be able to as Tesco says it will open bank branches in 30 of its stores this year.

Tesco (www.tesco.com) is taking on the high-street banks by opening bank branches in 30 of its stores by the end of this year, it said yesterday. The first branches will open in Blackpool, Coventry and Brislington next month.

It is also hoping to add current accounts to its range of personal finance products, but said this move is likely to be 18 months away as it needs to set up new IT systems. Tesco already offers credit cards, insurance, loans and savings accounts.

Tesco set up its personal finance department 11 years ago, as a joint venture with RBS (www.rbs.co.uk). It bought out RBS last July and has been trialling an in-store bank in Glasgow for more than two years.

Tesco said earlier this month that the amount of money deposited in its savings accounts had nearly doubled over the past six months. More accounts were opened in December 2008 than in the whole of 2007.

Chris Eagle, commercial manager at CreditChoices.co.uk, said: “Many people have lost confidence in traditional high street banks, and Tesco are clearly looking to cash-in on this sentiment.

“Being able to sort out your finances as part of you weekly shop does offer convenience, but you should always compare Tesco’s products with others on the market to ensure you are getting the best deal for your circumstances. Don’t compare products on price alone – but overall value”

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