British department store group House of Fraser recently announced it is planning to invest £35 million in digital-only bank, Tandem. This news comes less than a year after Tandem secured over £2 million through equity crowdfunding platform, Seedrs.
As previously reported, Tandem seeks to provide the most helpful, not the most painful, bank services for customers. It is the 14th bank to receive a license from the PRA in the past two and a half years. Tandem recently offered up free shares that were worth 5% of the business in return for advice and product feedback. This funding round is reportedly part of the company’s “Co-Founders” program, which allows customers to own shares of the business. At the time of the Seedrs campaign, Ricky Knox, founder of Tandem, stated:
“Part of ‘co-founders’ is building a group of advocates. This is a group of people who have been involved. One of the things about the new generation growing up is that people want to come along and participate. We get them involved and we hope they will be customers and they will bring all their mates too.”
Speaking about the Tandem investment, House of Fraser chairman, Frank Slevin, shared with Business Insider:
“House of Fraser is committed to a transformation of its business over the next five years and this new partnership is just one illustration of how we’ll deliver a meaningfully different set of services to our customers.”
Knox also revealed to the media outlet:
“House of Fraser is one of the great loved retail giants, with a customer-centric heritage that aligns closely with Tandem’s mission and values. We’re excited about the opportunity to help their loyal customers with their financial lives.”
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