Bonus fury ‘may fuel demand for Tesco Bank loans’
Personal loan customers may increasingly shun traditional banks.
The ongoing public anger over bankers’ bonuses could lead many consumers to shun high street banks and consider alternative personal loan providers, the boss of Tesco Bank has suggested.
In an interview with the Herald, Benny Higgins, chief executive of Edinburgh-based Tesco Bank, said that he was unsurprised by the government’s decision to impose a 50% windfall tax on banking sector bonuses in light of the widespread public outrage.
Commenting on Tesco Bank’s prospects in the aftermath, he remarked: “It would be naive not to think that the attitude to banks has been affected and we will definitely be seen as being different.”
Mr Higgins claimed that Tesco Bank is “trying to do things differently” to the traditional banks, but emphasised that he is interested “in concentrating on our strengths, rather than anyone’s apparent weaknesses”.
He also told the news provider that Tesco Bank served 20% more personal loan customers this year, which was accompanied by a 10% increase in credit card sales and a 30% rise in savings customers.
Tesco is not the only supermarket to have entered the financial services sector, with Sainsbury’s leading the way more than 10 years ago.
Since then, a number of other companies have entered the mix, including ASDA and Marks & Spencer.
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