Tesco asks Goldman Sachs to find buyers for banking business

DavidT67

wmb194 said:

Virgin Money perhaps. It can add another banking system to its stable of disparate systems that it will never integrate.

ROFLOL, ah yes, the old which 'Virgin' login page and set of credentials for which account conundrum. 

[Deleted User]

ircE said:

Bloomberg reports Tesco has started the process for the potential sale of Tesco Bank. They've appointed Goldman Sachs as an advisor to seek out buyers. No comment yet from Tesco nor GS.

Tesco Bank sold its mortgage book to Lloyds in 2019 and shut down its current accounts in 2021. Its main offerings now are savings accounts, credit cards, personal loans and insurance products. The Internet Saver has been quite competitive given its instant access, and I see the Foundation credit card as a common option for a credit-builder card. Perhaps they'll be a more attractive proposition than The Co-operative Bank, which has also reportedly been looking for a buyer.

there

It (and Tesco Mobile) have been informally up for a sale for a number of years.

The bank's value will always be lower to a third party as a good chunk of it's customers are Tesco loyals and use it it due to the shopping in Tesco and collecting Clubcard points. 

WillPS

[Deleted User] said:

ircE said:

Bloomberg reports Tesco has started the process for the potential sale of Tesco Bank. They've appointed Goldman Sachs as an advisor to seek out buyers. No comment yet from Tesco nor GS.

Tesco Bank sold its mortgage book to Lloyds in 2019 and shut down its current accounts in 2021. Its main offerings now are savings accounts, credit cards, personal loans and insurance products. The Internet Saver has been quite competitive given its instant access, and I see the Foundation credit card as a common option for a credit-builder card. Perhaps they'll be a more attractive proposition than The Co-operative Bank, which has also reportedly been looking for a buyer.

there

It (and Tesco Mobile) have been informally up for a sale for a number of years.

The bank's value will always be lower to a third party as a good chunk of it's customers are Tesco loyals and use it it due to the shopping in Tesco and collecting Clubcard points. 

If such a thing was a blocker then they'd sell it with a long license on the Tesco brand. Jobsaguddon. 

M&S don't own any of M&S Bank any more but there's no sign of them rebranding, stretching the point a little The Co-operative Bank continue to use the (old) Co-operative Group branding.

Not at all an unconventional situation.

subjecttocontract

[Deleted User] said:

ircE said:

Bloomberg reports Tesco has started the process for the potential sale of Tesco Bank. They've appointed Goldman Sachs as an advisor to seek out buyers. No comment yet from Tesco nor GS.

Tesco Bank sold its mortgage book to Lloyds in 2019 and shut down its current accounts in 2021. Its main offerings now are savings accounts, credit cards, personal loans and insurance products. The Internet Saver has been quite competitive given its instant access, and I see the Foundation credit card as a common option for a credit-builder card. Perhaps they'll be a more attractive proposition than The Co-operative Bank, which has also reportedly been looking for a buyer.

there

It (and Tesco Mobile) have been informally up for a sale for a number of years.

The bank's value will always be lower to a third party as a good chunk of it's customers are Tesco loyals and use it it due to the shopping in Tesco and collecting Clubcard points. 

I can't see the connection between a Tesco shopper  and a Tesco bank account customer. I'm not aware of any benefits in either direction.

WillPS

subjecttocontract said:

[Deleted User] said:

ircE said:

Bloomberg reports Tesco has started the process for the potential sale of Tesco Bank. They've appointed Goldman Sachs as an advisor to seek out buyers. No comment yet from Tesco nor GS.

Tesco Bank sold its mortgage book to Lloyds in 2019 and shut down its current accounts in 2021. Its main offerings now are savings accounts, credit cards, personal loans and insurance products. The Internet Saver has been quite competitive given its instant access, and I see the Foundation credit card as a common option for a credit-builder card. Perhaps they'll be a more attractive proposition than The Co-operative Bank, which has also reportedly been looking for a buyer.

there

It (and Tesco Mobile) have been informally up for a sale for a number of years.

The bank's value will always be lower to a third party as a good chunk of it's customers are Tesco loyals and use it it due to the shopping in Tesco and collecting Clubcard points. 

I can't see the connection between a Tesco shopper  and a Tesco bank account customer. I'm not aware of any benefits in either direction.

• 'Enhanced' (but mostly still pitiful) rewards on Tesco spend on credit cards
• `Clubcard Plus (as in the £7.99/month supermarket scheme) exclusive credit card
• Clubcard rewards more broadly intended to reward you for being in the Tesco ecosystem (watered down in recent years)

It's thin pickings in 2023 but it still exists. Tesco Bank products are also promoted in store.

jimjames

subjecttocontract said:

[Deleted User] said:

ircE said:

Bloomberg reports Tesco has started the process for the potential sale of Tesco Bank. They've appointed Goldman Sachs as an advisor to seek out buyers. No comment yet from Tesco nor GS.

Tesco Bank sold its mortgage book to Lloyds in 2019 and shut down its current accounts in 2021. Its main offerings now are savings accounts, credit cards, personal loans and insurance products. The Internet Saver has been quite competitive given its instant access, and I see the Foundation credit card as a common option for a credit-builder card. Perhaps they'll be a more attractive proposition than The Co-operative Bank, which has also reportedly been looking for a buyer.

there

It (and Tesco Mobile) have been informally up for a sale for a number of years.

The bank's value will always be lower to a third party as a good chunk of it's customers are Tesco loyals and use it it due to the shopping in Tesco and collecting Clubcard points. 

I can't see the connection between a Tesco shopper  and a Tesco bank account customer. I'm not aware of any benefits in either direction.

You get additional points for spend on Tesco credit card and can use as clubcard

subjecttocontract

Well I didn't know that......might have to get a Tesco CC now.

WillPS

subjecttocontract said:

Well I didn't know that......might have to get a Tesco CC now.

It's a terrible deal. Even if you value a point at 2p (which is a stretch) and ignore transaction rounding (which is a killer), shopping at Tesco gets you effectively 0.5% back in credit card rewards. The 'everywhere else' rate is even more pitiful.

This is easily beaten, 1% on supermarket spend should be everyone's baseline.

boingy

jimjames said:

subjecttocontract said:

[Deleted User] said:

ircE said:

Bloomberg reports Tesco has started the process for the potential sale of Tesco Bank. They've appointed Goldman Sachs as an advisor to seek out buyers. No comment yet from Tesco nor GS.

Tesco Bank sold its mortgage book to Lloyds in 2019 and shut down its current accounts in 2021. Its main offerings now are savings accounts, credit cards, personal loans and insurance products. The Internet Saver has been quite competitive given its instant access, and I see the Foundation credit card as a common option for a credit-builder card. Perhaps they'll be a more attractive proposition than The Co-operative Bank, which has also reportedly been looking for a buyer.

there

It (and Tesco Mobile) have been informally up for a sale for a number of years.

The bank's value will always be lower to a third party as a good chunk of it's customers are Tesco loyals and use it it due to the shopping in Tesco and collecting Clubcard points. 

I can't see the connection between a Tesco shopper  and a Tesco bank account customer. I'm not aware of any benefits in either direction.

You get additional points for spend on Tesco credit card and can use as clubcard

We recently switched our joint CC to Tesco and this confused the heck out of me at first. I already had a Clubcard and when you blip the Clubcard for points and then the Tesco credit card the machine sees a second Clubcard with a different number and asks you which Clubcard you want to use. To add to the confusion it doesn't take payment on the first blip of the credit card, you have to blip it again. I was using a self-service till and I almost stole the shopping the first time because I thought I had paid! It was a bit embarrassing...

subjecttocontract

Yeah.......after some thought I reckon a Tesco CC is probably only worth, to me, about £10 a year in extra Clubcard vouchers. So, I won't bother and it doesn't look like I've missed out on anything worthwhile.