Supermarkets could take over personal finance
The 4 supermarket giants – Tesco, Asda, Sainsbury’s and Morrisons are set to steal 17 million current account customers. According to a survey by fool.co.uk, they already take £20 of every £100 spent in shops and could soon take over personal finance.
20% of people already have a supermarket credit card, 10% have a supermarket savings account, but only 1 in 200 people have a supermarket current account, but according to fool.co.uk, this could all change.
A spokesperson for fool.co.uk highlighted that supermarkets started with store cards a decade ago and quickly expanded into credit cards, personal loans and savings accounts. Many of the UK’s leading banks have announced that they may soon start charging customers on a pay per transaction basis. As a result, supermarkets could be picking up many more customers.
Fool.co.uk added that supermarkets are good at marketing travel-insurance policies and with their low running costs, they can easily undercut other providers. They are already stealing customers from banks and in the future could steal even more.
Over 40 million adults in the UK are estimated to have a current account. This is a huge amount of people for supermarkets to target.