A MAJOR supermarket bank has been sold to Barclays in a move that will affect more than five million customers.
It follows reports Tesco was reviewing the future of its banking arm and that HSBC had submitted an indicative offer for the business.
The move will affect millions of credit cards, loans and savings customers.
While the operation of these services will be run by Barclays, they will continue under the Tesco Bank name.
The retailer said there is no need for customers to take any action, and it will be in touch with them over the coming months.
No current timeline has been issued for how long the changes will take.
Ken Murphy, Tesco Group chief executive said: “Tesco Bank is a strong business that has helped millions of loyal customers to manage their money for more than 25 years.
“As we look to the future, our aim is to be the best provider of financial services in the UK, with this strategic transaction and partnership with Barclays unlocking greater value for customers and for our business.”
Most read in Money
Tesco Bank offers a range of range of personal banking and insurance products, including personal loans, credit cards, car insurance and pet insurance.
Barclays expects to pay roughly £600 million for Tesco Bank’s credit cards, unsecured personal loans, deposits and operating systems.
Tesco Bank employees will also transfer to Barclays over time.
The lender stopped offering mortgages through its bank in 2019 after seven years.
It’s 23,000 mortgage loans were sold to Lloyds Banking Group, which Halifax is part of, for around £3.8billion.
It comes after Sainsbury’s announced it will wind down its banking division – known as Sainsbury’s Bank – as part of plans to focus on retail.
Elsewhere, struggling Metro Bank announced it was to axe 800 jobs and review its opening hours in a new cost-cutting drive.
It comes after a difficult time for banks in the UK.
The latest announcements mean over 190 branches so far will shut this year as banks look to move away from the high street.
Data from the UK’s largest cash machine network, LINK, keeps track of any planned branch closures across the UK.
Several major lenders have been affected, such as Barclays, Lloyds and the Bank of Scotland.
Customers are increasingly turning to online banking to manage their finances while banks and building societies look for ways to cut costs.
Meanwhile, here is the full list of bank branches closing in 2024 including Lloyds and Barclays.
What the sale of Tesco Bank could mean for your money
As with other UK banks, customers of Tesco Bank are protected by the Financial Services Compensation Scheme (FSCS), meaning a maximum of £85,000 per person is protected if the bank goes bust.
A sale will be monitored closely by the banking regulator.
READ MORE SUN STORIES
In the short term, it is likely customers wouldn’t notice much change.
When Co-op Bank put itself up for sale in 2017, there was no immediate impact on the products and services.
Do you have a money problem that needs sorting? Get in touch by emailing email@example.com.
Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories.