21 October 2017
visit www.atos.net

Tandem rocked by £29 million funding halt

20 March 2017  |  7508 views  |  0 Tandem Bank

Digital challenger bank Tandem has been rocked by news that Sanpower, the Chinese conglomerate which owns House of Fraser, has been forced to cancel a £29 million cash injection intended to help the startup meet regulatory capital requirements.

The pull-back from Sanpower, first reported on City AM, is understood to be connected with Chinese Government-led restrictions on outbound investment.

The news is a serious blow to Tandem's ambitions to launch as a full bank, forcing it to miss licencing deadlines imposed by the Prudential Regulatory Authority.

Speaking to City AM, Tandem chief Ricky Knox said the startup will go ahead with the launch of its mobile app under FCA rules, but without the planned savings product as its centrepiece.

Tandem has so far raised £28 million for its venture, including a £6 million investment from House of Fraser and a £1 million crowdfunded contribution from from its user community.

Knox says Tandem intends to re-apply for a licence with PRA, and will be returning to its original investors Omiday Network and Route 66 Ventures as it begin its search for fresh funding.

City AM says staff were appraised of the news this morning and that the startup is now "examining the structure of the business".
KeywordsFINDEX

Comments: (0)

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

House of Fraser invests £35m in neobank Tandem

House of Fraser invests £35m in neobank Tandem

03 January 2017  |  14882 views  |  0 comments | 21 tweets | 15 linkedin
Tandem Bank welcomes its first customers; Loot steps into the fray

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

04 November 2016  |  10069 views  |  1 comments | 9 tweets | 15 linkedin
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  |  10188 views  |  1 comments | 20 tweets | 13 linkedin
Tandem Bank seeks engagement with 'Co-Founder' community; Omidyar invests

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

05 April 2016  |  8101 views  |  0 comments | 12 tweets | 12 linkedin
Tandem selects Fiserv Agiliti as IT backbone

Tandem selects Fiserv Agiliti as IT backbone

09 February 2016  |  7410 views  |  1 comments | 9 tweets | 7 linkedin
Mobile-first Tandem gets UK banking license

Mobile-first Tandem gets UK banking license

01 December 2015  |  13816 views  |  0 comments | 28 tweets | 21 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.atos.netvisit www.innotribe.com

Top topics

Most viewed Most shared
HSBC partners Bud for open banking trialHSBC partners Bud for open banking trial
9343 views comments | 22 tweets | 26 linkedin
satelliteGates Foundation backs Ripple collaboratio...
8787 views comments | 13 tweets | 10 linkedin
IBM uses blockchain to improve cross-border payments processingIBM uses blockchain to improve cross-borde...
7908 views comments | 9 tweets | 17 linkedin
Sibos 2017: API or the highwaySibos 2017: API or the highway
7433 views comments | 10 tweets | 22 linkedin
Eight banks form joint venture to launch blockchain trade platformEight banks form joint venture to launch b...
7074 views comments | 14 tweets | 27 linkedin

Featured job

Competitive base, commission, benefits
London, UK

Find your next job