Online lender Tandem acquires Harrods Bank in bid to expand services
Start-up lender Tandem has snapped up Harrods Bank in a deal that will bring it closer to launching a savings account.
The undisclosed deal will hand the online-only lender £80 million of additional capital and enable it to regain its banking licence , if it wins regulatory backing.
The move is a bright spot amid a turbulent year for the firm, which saw it lose its banking licence after the Chinese owners of House of Fraser - Sanpower Group - pulled £29 million-worth of funding.
Founder Ricky Knox said: "Tandem has been built from the ground up with the help of over 11,000 co-founders, who have helped us shape products and services that really make a difference to their lives.
"This acquisition will allow us to scale the business and ensure we can introduce as many people as possible to a new way of banking."
Tandem, which was founded in 2014 and has 80 staff, has no high street branches and gives customers access to their accounts through a smartphone app.
The London-based firm expects to launch a credit card service "within the next few months" and a savings account by the end of the year.