Tandem has agreed to acquire 100% of Harrods Bank, subject to regulatory approval.
The acquisition will bring around £80m of capital into Tandem, which will help to accelerate its growth plans.
Earlier this year, the challenger suffered a blow when £29m of investment was pulled by Chinese conglomerate Sanpower Group.
This resulted in Tandem having to temporarily pause plans to launch a savings account offering.
However, the acquisition of Harrods Bank will allow Tandem to speed up its launch plans and start offering savings accounts soon.
“This means we can grow faster than ever, introducing as many people as possible to everything we’ve been building with our co-founder community,” said Tandem.
“Together we’re going to continue our mission to create a new, better way of banking that has the customer at its focus.”
Tandem revealed it will continue to develop and roll out its app and credit card as planned.
Meanwhile, once the acquisition is completed, it will operate the whole business under the Tandem brand.
“We expect the deal to take a few months to finalise, and it’s still subject to regulatory approval, but we’ll keep you updated on our progress,” Tandem added.
Harrods Bank offers savings products as well as residential and buy-to-let mortgages.
Pictured above Ricky Knox, CEO of Tandem
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