Financial News

  • 12 December 2013, 6:39

Tesco Bank To Offer Current Accounts

Tesco Bank is to start offering current accounts in 2014 as it moves to profit from the misfortunes of its biggest rivals.

The bank, which was founded in 1997, is to create 600 new jobs in Glasgow and Edinburgh over the next few years as it expands its operations from credit cards, personal loans, savings, mortgages and general insurance.

Tesco said the positions were permanent with the majority being full time and instead of incentivising sales, it would offer a competitive basic salary and pension scheme.

Benny Higgins, Chief Executive of Tesco Bank, said: "Since 2008, we have invested to build a bank for Tesco customers.

"We now have more than 6.8 million accounts and offer straightforward, transparent products which reward loyalty and provide great value.

"We are making excellent progress towards the launch of our current account next year and the recruitment of these new roles is an important milestone in that process."

Tesco Bank's decision comes at a tough time for its major rivals while other challenger banks continue to struggle to make an impact against the dominance of RBS, Lloyds, HSBC and Barclays.

The big banks remain under pressure over a host of scandals, including the mis-selling of payment protection insurance (PPI). Rate-rigging and other such practices have further damaged the industry's reputation in the wake of the financial crisis.

On Wednesday it was also confirmed that Lloyds Banking Group had been fined £28m for sales incentive schemes which were found to reward staff even though the products they had sold were deemed unsuitable for the customer.

Tesco Bank currently employs 4,000 staff with its operations largely concentrated online and via the phone.

The development was welcomed by the Chancellor George Osborne who tweeted: "Good to see @Tesco entering current account market. More choice is best way to deliver a banking sector that works for customers."

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