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.
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