7. October 2009 15:07
Tesco unleashed its new banking brand yesterday.
To begin with, this just means renaming Tesco Personal Finance as "Tesco Bank". It doesn't mean any new product announcements just yet, although it's a sure sign of things to come.
And although it won't overtake the established banks overnight, it'll certainly put a bat in their chimney.
300,000 new customers joined Tesco Personal Finance last year to take their customer base to 6 million, and that's just through their insurance savings and loan products. What will happen if they launch a current account with loyalty benefits – one way or the other – for shoppers in its stores?
Lloyds TSB, for example, succeeded in opening a million new current accounts in the first six months of this year; doesn't Tesco have at least as good a marketing reach?
We'll keep you posted as and when they get into mortgages. Especially if any of them come with free cottage cheese.