| Type | Private |
|---|---|
| Industry | Finance and insurance |
| Predecessor | Tesco Personal Finance |
| Founded | 1997 |
| Headquarters | Edinburgh, Scotland |
| Key people | Benny Higgins CEO |
| Products | Consumer financial services |
| Total assets | £8.156 billion (31 December 2007) |
| Employees | 600 at head office and 800 at Newcastle site (2011) |
| Parent | 100% Tesco |
| Subsidiaries | Tesco Compare |
| Website | tescobank.com |
| References: Tesco purchase of RBS stake completed 2008Q4 | |
Tesco Bank is the trading name of Tesco Personal Finance plc, a telephone and internet based commercial bank in the United Kingdom owned by Tesco, the UK's largest supermarket. Until 2008 it was a 50:50 joint venture between Tesco and the Royal Bank of Scotland, one of the UK's largest banks and remained under the Tesco Personal Finance plc (TPF) branding until 2010. Customers will gradually notice the phasing out of the TPF brand until mid to late 2011 when the rebranding will be complete. It is registered in Scotland at St Andrew Square, Edinburgh.
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Prior to the formation of TPF, Tesco had a banking joint venture with NatWest, which ended in February 1997. Tesco Personal Finance was formed in July 1997 following the successful launch of Sainsbury's Bank by its main UK competitor, J Sainsbury plc Sainsbury's. The bank was launched as a joint venture with the Royal Bank of Scotland, which processed all its financial transactions. Subsidiary companies of the Royal Bank, such as Direct Line, UKI and Lombard Direct helped Tesco Personal Finance provide insurance products.
Tesco Personal Finance has been a great success for both Tesco and the Royal Bank of Scotland, returning profits of £65 million for Tesco for the financial year to February 2007. Tesco is able to use its large customer base to cross sell financial services products, and allows customers to accumulate Tesco Clubcard points when they purchase finance products. This strategy is highly effective because it can be combined with in store offers which results in customers spending higher amounts of money, often on non-food items in order to increase sales across all product lines thus causing sustainable yet competitive growth which allows them to deal with competition for market control with ASDA.
Tesco Bank have currently got two Tesco Bank in-store branches in Coventry Tesco Extra and West Durrington Tesco Extra. The centre also has a Euro cash machine providing commission free Euros and a Bureau de Change run by Travelex. If successful this trial will roll out to a number of other key and flagship stores.
In July 2008, Tesco announced that they were buying out the Royal Bank of Scotland's 50% stake in the company for £950 million, and the transaction was completed later that year.[1][2]
During 2009 Tesco plan to open 30 branches, branded Tesco Bank. The products have always been promoted in store with posters and leaflets (the low cost of advertising in existing premises is one competitive advantages of a retailer-owned financial services company), but these direct customers to contact Tesco Financial Services by post, phone or via the internet.[3]
In October 2009 Tesco Financial Services was renamed Tesco Bank.[4] The company is adding mortgages and current accounts to its product range.
In July 2010 Tesco Bank opened a major facility at Quorum Business Park in Newcastle.
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