29 April 2017
Find out more

Tandem Bank welcomes its first customers; Loot steps into the fray

04 November 2016  |  8890 views  |  1 Tandem Bank

UK digital challenger bank Tandem has begun inviting its community of 10,000 Co-Founders to be the bank’s first customers.

Formed in 2014 and accessible online, via an app and through a UK call centre, Tandem received its banking license in November last year and opened its first handful of accounts in October.

The next wave of prospective customers from the putative bank's waiting list are now being contacted by e-mail and invited to sign up.

The Tandem Co-Founder Community include members of the general public who get exclusive access to new products in exchange for feedback and closer engagement with the bank.

Once onboard, they will be able to trial the Tandem app and open a savings account.

Credit cards, loans and current accounts will be rolled out throughout 2017.

Tandem joins a long list of new banking startups hoping to disrupt the hegemony of Britain's biggest banks by using mobile and online services to forge a new relationship with customers.

Ruth Handcock, Tandem chief customer officer says: “There is a palpable sense that change is needed in the consumer banking sector. Tandem welcomes the challenge and will address the real needs that face millions; helping them plan for the unexpected, helping them get to the end of the month and ultimately making more of their money.”

Tandem is being joined by another new arrival on the UK banking scene in the shape of Loot. The mobile financial services startup has just closed a further £2.5m funding round and intends to open to a 20,000 strong waiting list of prospective customers next week.

Unlike rival challengers. Loot is eschewing the large capital and regulatory risks that stem from authorisation with the FCA, by first building up a loyal user base before approaching the regulator.

Loot provides a mobile banking app connected to a prepaid, contactless ‘MasterCard’ debit card. Each customer has their own Loot account number and sort code, and the underlying e-banking services and license is provided by Germany's Wirecard Card.

“By automatically categorising all of your spending, as it happens, and showing you how much you still have available to spend to stay on budget, Loot puts you totally in control of your money," says Ollie Purdue, founder and CEO of Loot "We will soon be adding a further unique feature, again making use of your spending data, to help you save more money. We will send you messages on your phone offering you special discounts and deals from our partner retailers, cafes, cinemas etc."

The Loot Advisory Board includes Zopa co-founder James Alexander,, VC Nick Kingsbury, John Sills, a former head of customer innovation at HSBC, digital banking consultant Jean-Stéphane Gourévitch Stefan Klestil from investor SpeedInvest.

Comments: (1)

A Finextra member
A Finextra member | 04 November, 2016, 11:59

These are pretty underwhelming offers.....  the Loot proposition is a prepaid debit card and an app... operating on an ELMI license and Wirecard technology.....     There are lots of prepaid issuers out there and also some very good UK Based processors (APS for example)  not sure all this is particularly newsworthy, but time will tell....  Will these offers create momentum? How large is the marketing budget for each of these guys?   will they just get a license and sell it to a foreign bank?   maybe not the latter post Brexit.

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Tandem hits crowdfunding target after rocky start; oversubscribes push total to £2 million

Tandem hits crowdfunding target after rocky start; oversubscribes push total to £2 million

19 May 2016  |  9376 views  |  1 comments | 20 tweets | 13 linkedin
Tandem to kickstart £1 million crowdfunding campaign

Tandem to kickstart £1 million crowdfunding campaign

03 May 2016  |  5609 views  |  0 comments | 11 tweets | 6 linkedin
Tandem Bank seeks engagement with 'Co-Founder' community; Omidyar invests

Tandem Bank seeks engagement with 'Co-Founder' community; Omidyar invests

05 April 2016  |  7410 views  |  0 comments | 12 tweets | 12 linkedin
Tandem selects Fiserv Agiliti as IT backbone

Tandem selects Fiserv Agiliti as IT backbone

09 February 2016  |  6568 views  |  1 comments | 9 tweets | 7 linkedin
Mobile-first Tandem gets UK banking license

Mobile-first Tandem gets UK banking license

01 December 2015  |  10854 views  |  0 comments | 28 tweets | 21 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit dh.comvisit vasco.com/news/PSD2-compliant-solutionsFind out more

Top topics

Most viewed Most shared
Six global banks join Swift DLT trialsSix global banks join Swift DLT trials
7760 views comments | 15 tweets | 36 linkedin
BBVA steps up fintech acquisition strategy with purchase of OpenpayBBVA steps up fintech acquisition strategy...
7000 views comments | 17 tweets | 16 linkedin
Should central banks open up payment and settlement systems to non-banks?Should central banks open up payment and s...
6039 views comments | 22 tweets | 21 linkedin
Token raises $15.7 million as PSD2 approachesToken raises $15.7 million as PSD2 approac...
5946 views comments | 20 tweets | 20 linkedin
hands typing furiouslyMobile Technology, Its Importance, Present...
5710 views 0 | 2 tweets | 1 linkedin

Featured job

to 120K base, £300K ote, stock options
London, UK

Find your next job