The Bank of England has given the green light for the takeover of loss-making Harrods Bank by digital challenger Tandem.
The approval is a major step forward in Tandem’s plan to enter the UK banking market, granting access to a full banking licence and 10,000 new savings and mortgage customers.
Tandem's audacious bid to buy Harrod's Bank came just months after the startup appeared to pivot from its original plans to launch a fully-licensed UK bank after losing out on a £29 million investment from Sanpower, the Chinese conglomerate which owns House of Fraser.
Ricky Knox, founder and CEO of Tandem Bank, says: “We are now within sight of our goal of acquiring Harrods Bank. This acquisition will transform Tandem into one of the UK’s leading digital challenger banks with a fast growing range of products, and a genuine commitment to build a good bank”.
Earlier this week it was reported that former Barclays chief Bob Diamond was mulling a £10 million investment in Tandem, which joins a raft of app-led challengers vying to shake up the moribund UK banking industry.