View more on these topics

Tesco could squeeze small banks

Tesco could dominate the financial services sector and potentially push out smaller banks and societies, says Datamonitor.

Robert Mattai, retail banking analyst at Datamonitor, says the supermarket giant is progressing towards offering current accounts and mortgages, and that with its vast customer base, extensive store network and solid brand reputation, it will have a competitive advantage over rivals.

Tesco signalled its intentions to make further inroads into the retail banking market in July 2008, when it bought the Royal Bank of Scotland’s 50% share in Tesco Personal Finance for 950m.

Since then, Tesco has reshaped its personal finance division by appointing Benny Higgins, former head of retail banking at HBOS and RBS, as chief executive.

In an interview with The Scotsman last year, Higgins said that branching out into current accounts and mortgages was “a matter of when, not if”.

But Mattai says: “Just as the supermarket chain has forced many local retailers out of business, it will be no surprise if Tesco’s move into banking captures the market share of a lot of the smaller building societies that rely on local business.”

A spokeswoman for Tesco Personal Finance says that although it is looking at growing its financial services proposition it has not committed to anything.

She adds: “We announced our growth plans back in July 2008 and although we are looking to expand our mortgage and current accounts business we have not committed to anything at present.”


Paymentshield to offer debt advice

Members of Paymentshield Mortgage & Protection Club will be able to offer their clients free debt advice through a deal with Newtomorrow Broker Services.

RPI drops to lowest rate since 1960

Depreciation in house prices and lower mortgage payments led to the Retail Prices Index falling to 0.1% in January, the lowest rate since 1960.

Great chance to win customers for life

Adverse credit is the former product of choice that advisers and lenders are now avoiding like the plague. But what has happened to all the people who still need advice?

Retire, retirement, calculator

Defined benefit schemes: Part 2

Justin Corliss, business development manager In defined benefit (DB) schemes part 1, we looked at recent guidance aimed at DB scheme trustees and sponsors. In part 2 we will look at guidance available to pension transfer specialists (PTS). In the first instance, PTS should familiarise themselves with COBS 19. All guidance below is designed to […]


News and expert analysis straight to your inbox

Sign up