Supermarkets pose big threat to bank current account base - Motley Fool

Supermarkets pose big threat to bank current account base - Motley Fool

UK supermarkets have the potential to take millions of UK current account holders away from banks according to research conducted by personal finance Web site Motley Fool.

Almost half of the 1000 Fool subscribers questioned say they believe supermarkets like Tesco and Sainsbury's sell value for money financial products and 50% want the stores to offer more of these services.

Whilst one in five shoppers has a supermarket credit card less than one in 200 has a current account and only one in 300 get their mortgage off-the-shelf from the retailer.

David Kuo, head of personal finance, Motley Fool, believes there is huge potential for supermarkets in the current accounts market.

Says Kuo: "Ten years ago supermarkets started with store cards and quickly expanded into credit cards, personal loans and savings accounts."

He continues: "It is reckoned that over 40 million adults in the UK have a current account. This is a massive unpicked cherry for supermarkets to target. If three out of seven shoppers switch their loyalty from banks to supermarkets, as many as 17 million bank customers could jump ship."

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