Feeds

Tesco & RBS launch Net bank

So now you really can have your salary paid direct to the supermarket

  • alert
  • submit to reddit

The Essential Guide to IT Transformation

Tesco is to launch a virtual banking service in connection with its online home-shopping service by expanding its Tesco Personal Finance (TPF) scheme, run jointly with Royal Bank of Scotland. Customers will be able to check balances, transfer money or apply for Tesco-branded mortgages online.

TPF now has over one million customers, cashing in on the Tesco brand name to pull in online business. It currently offers loans, credit cards, insurance policies and pensions.

"It is our link with the Tesco Web site that gives us a big advantage – as it attracts more customers so will we," Iain Clink, CEO at TPF told today's Financial Times. "And more importantly, the virtual supermarket, through brand loyalty and customer traffic, will have even lower customer acquisition costs than the real supermarket."

The plans co-coincided with TPF making a profit for the first time since its launch two years ago. It had previously made losses totalling £43 million.

"The big thing for us is that we have shown that the cross-selling works in the physical supermarkets sector – most of our financial customers have come to us from picking up leaflets in stores," said Clink. "Now that is working with the Internet as well. We know it is possible and we are going to build on that."

One in 10 of visitors to Tesco's Web site – which includes its cyber shopping business – look at its financial pages, the company said. Sir George Mathewson, CEO of Royal Bank of Scotland, said it cost less than £50 to acquire each new customer for the scheme. ®

If you want more sizzle with your fiscal sausgage, check out Cash Register and tune into the latest net finance news.

Boost IT visibility and business value

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.