Tandem Bank is expanding in continental Europe

Tandem Bank is set to join the wave of fast-growing digital banks raising new funds, and has started discussions with investors to support a planned overseas expansion. People close to the bank, which has around 600,000 customers, said it was in the early stages of talks but was hoping to secure an investment in the next three months, which was likely to be larger than the £80 million raised when it took over Harrods Bank last year… Tandem’s focus on savings and lending through credit cards, rather than the current accounts offered by peers like Monzo, has led to slower growth in user numbers, but faster revenue growth. It reported total revenues of £5.1 million in 2017, compared to £1.8 million at Monzo, which was valued at £1 billion in its most recent fundraising… Tandem is now looking to directly expand into several countries, starting with trials in continental Europe by the end of this year. That follows similar moves by several of its digital rivals. Starling Bank is planning to start operating in Ireland this year, while Monzo is plotting a push into the United States. Revolut, which initially focused on travel money before expanding into broader banking services, has been particularly focused on international expansion, with plans to move into more countries including the US, Australia, Canada and Japan.
Nicholas Megaw