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Doesn't Tesco in the UK have a bank product? Can't say I hear much about it when I shop there. Makes sense though, why not be a lender as well? Then people can
by lordnacho 5y ago
Doesn't Tesco in the UK have a bank product? Can't say I hear much about it when I shop there.
Makes sense though, why not be a lender as well? Then people can get their groceries before they get their monthly paycheck.
Also on the payments side, why pay the card company when you can make your own card?
These aren't new observations though, anyone looking at a supermarket would think of these things.
Big issue is regulatory. There's a heck of a lot of hoops to jump through to get a bank license.
- dazc 5y agoTesco Bank is pretty much a branding of Royal Bank of Scotland (RBS) rather than their own financial service company though. I used to have the Tesco credit card which was useful for the reward points but after trying to report a rogue transaction I found the customer service quite awful and left. Dunno if that was always the case of if they have just gone down hill of late?
- tixocloud 5y agoQuite a few grocery stores across the world offer financial services. The issue is that lending is a very different low margin business that requires an incredible amount of capital and complexity to setup. Which is why usually they get winded down to partner with banks or begin with partnerships in the first place. You’re right - regulatory and compliance are huge barriers.