Tandem given full digital banking licence by Bank Of England
British consumers will soon be able to choose from a wider range of online banking services than ever before after an official licence was granted to the country’s second digital-only bank.
Promising to offer “a new kind of digital banking experience”, Tandem will offer a range of services including current accounts, credit cards, savings and loans, all only available online.
The company will now start to develop and build its technology platform and ensure it meets all capital requirements.
“Today is a great day for Tandem,” Tandem co-founder Ricky Knox wrote in a blog post announcing the news.
“We truly believe there’s a new business model for banking, where the success of the bank is aligned to the success of its customers, meaning people get a bank that doesn’t just say it’s on their side, it truly is.”
Tandem will look to utilise big data and the latest mobile technology to look to improve customers’ experiences, Knox added, saying that its mobile experience will save customers “substantial money” each year.
This includes an app that will help customers save money by finding the best rates and services for their particular situation, and will also provide recommendations on choosing the right utility providers, and will even point customers to other banks’ products where appropriate.
“We truly believe that our mission to build “a good bank” will transform the industry, and in 10 years’ time people will consider their bank as one of the most helpful entities in their life, not one of the most painful,” Knox added.
Tandem will be launching soon, the company says, joining Atom Bank, which received its licence back in June.
Bsed in the North of England, Atom Bank says it aim is to launch an easy-to-use, transparent service through a mobile app and online portal, and claims to represent the “first real alternative” to traditional high street organisations.
The launch has been welcomed by some of the country’s leading technology firms, who have praised the Bank of England’s willingness to embrace new innovation.
“Tandem is the latest of a growing list of new entrants to the retail banking market. It should be welcomed, as innovation in this sector is being driven by these new and adventurous organisations,” said Anthony Duffy, Fujitsu’s director of retail banking, UK & Ireland.
“Of course, the new entrants won’t appeal to everyone and Tandem will be no exception. However, it won’t be seeking to become a mass market player – instead it will seek out that segment of the market that is extremely comfortable using mobile and internet based services, and is looking for something different to the offering of the established players. Seeing how the new entrants progress is making retail banking a very interesting market to watch.”
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