A £29m investment in Tandem Bank has fallen through forcing it to temporarily pause plans to launch a savings account offering.
The challenger bank had announced in January that House of Fraser had made an initial commitment to invest £35m in Tandem Bank, subject to preconditions being met, and received an initial £6m from Fraser Financial Services Limited in December.
Tandem has now announced the planned second wave of investment will no longer take place due to the increasing limitations placed on Chinese firms investing money abroad.
The retail chain is currently owned by Chinese conglomerate Sanpower Group.
In a blog post, Tandem revealed that the news would not delay its launch into the market with its app but said it had decided to pause its plans to offer savings accounts to customers in the short term.
“We will add saving accounts and current accounts back into the range of services we provide as soon as we feel the time is right for our customers and our business.”
“Our determination to reduce the stress people feel in managing their money is as strong today as it has ever been.”
Tandem added that plans to roll out financial services products to House of Fraser’s customer base remained a priority for both the bank and the retailer.
The bank also revealed that Fraser Financial Services will remain as an investor as a result of the initial wave of funding.
SIGN UP TO OUR NEWSLETTER TO RECEIVE MORE NEWS LIKE THIS STORY
U Account introduces cash pay-in option
U Account has launched a cash pay-in option for its 50,000 current account customers.
Aldermore provides £6.27m loan for south London development
Acre Invest has agreed a £6.27m funding package with Aldermore to build a large commercial unit and 18 apartments in Sydenham, south London.
Metro Bank to launch AI-powered money management service
Metro Bank has announced the upcoming release of Insights, a new artificial intelligence-powered money management service.
Over 500,000 complaints made about current accounts
The FCA has revealed that 509,047 complaints were made to financial services firms about current accounts during the second half of 2017.
A guide to ethical banking
Some 56% of workers with a pension are interested in investing in community projects, according to recent research.
Countingup partners with PrePay Solutions
PrePay Solutions (PPS) has joined forces with challenger bank Countingup to provide business accounting and banking together in one place.
TSB and Enterprise Nation offer SMEs digital MOT test
TSB’s small business customers have the opportunity to undertake a newly created digital MOT test as they join the Enterprise Nation community.
Revolut introduces spare change savings feature
Revolut has become the latest mobile banking platform to add a spare change savings feature to its current account.
GDPR compliance highlighted at first FIBA roadshow
The Financial Intermediary & Broker Association (FIBA) held its first regional roadshow last Thursday (12th April) in north London.
Moneyhub integrates with Monzo and Starling
Moneyhub has integrated with Monzo and Starling’s APIs to provide customers of the digital banks with a comprehensive overview of all their financial assets.