Ricky Knox of Tandem Bank
The takeover provides the digital-only challenger bank with a banking licence, plus access to £80m of capital and over 10,000 new accounts.
Challenger bank Tandem has completed the purchase of Harrods Bank following regulatory approval by the Prudential Regulation Authority and the Financial Conduct Authority.
The deal gives the group a banking licence, access to Harrods Bank customers and £80m of capital. It also brings Tandem a £375m mortgage book and over £400m of deposits.
Tandem is an app-led banking service that lets customers see all their financial information in one place and pro-actively helps them save money.
The challenger is currently rolling out a travel and cashback card ranked as a “Top Pick” by Money Saving Expert, as well as competitive savings products throughout 2018.
Tandem was built with over 11,000 co-founders who helped develop everything about the business, from the name to the product range.
Ricky Knox, Tandem’s CEO, said: “Building a good bank is incredibly important to us. And the acquisition of Harrods Bank means we can now confidently develop innovative services in line with our mission to make our customers’ lives richer.
“With our new banking licence, our banking app and our fast growing range of services, 2018 is going to be a great year for Tandem.”