Tesco is set to launch a range of
current accounts and
mortgages within the year.
In light of its successful Christmas season, the supermarket and personal finance chain is planning an expansion of its banking arm.
The chain says it wants to compete with the big high street banks like Halifax and
Barclays within 12 months in order to increase its profits and offer consumers more choice in terms of who looks after their money.
The chain managed to boost its Christmas sales by paying out over £100 million in
Tesco Clubcard vouchers over the festive season. It says this encouraged shoppers to buy their Christmas food and gifts at their local
Tesco.
The Christmas period was strong for
Tesco, which saw sales across its global enterprise rise 7.5 per cent. Its finance director Laurie McIlwee told The Sun newspaper, “we will launch
current accounts and
mortgages by the end of 2010 or early 2011."
Tesco’s personal finance arm has seen a rise in popularity over the last year or so as a result of consumers losing faith in traditional high street banks since the credit crunch set in.
