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House of Fraser to invest in banking start-up Tandem

Lauretta Roberts
30 December 2016

House of Fraser is to invest £35m in start-up bank Tandem in a deal which will result in the department store offering financial services to its customers.

Tandem received its banking license from the Bank of England last year. It has no branches and its customers will transact with it through its app, which it has just begun rolling out. It currently offers savings accounts and has plans to launch credit cards and current accounts next year.

House of Fraser is expected to outline more details of the deal when it updates on its wider five-year strategic plan in the first half of 2017, according to the The Telegraph.

Tandem Bank House of Fraser

Tandem Bank received its banking license last year

“House of Fraser is committed to a transformation of its business over the next five years and this new partnership is just one illustration of how we’ll deliver a meaningfully different set of services to our customers,” House of Fraser chairman Frank Slevin said.

The department store group was acquired by Chinese conglomerate Sanpower in 2014. Its deal with Tandem, which has raised significant backing from crowdfunding and investors including Route66, eVentures and Omidyar Network, its subject to unspecified preconditions.

House of Fraser operates around 60 stores in the UK and Ireland as well as one store in Abu Dhabi. Just before Christmas it opened its first store in China, in Nanjing. In November CEO Nigel Oddy revealed he would be leaving the group in the new year.

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