Tesco takes next step in banking as it selects Fiserv

”Tesco

Supermarket giant Tesco has taken the next step in its quest to become a bank by signing up Fiserv.

US-based Fiserv provides information management and electronic commerce systems to the financial services industry.

Tesco said Fiserv will assist it in becoming a full-service bank by providing account information and banking transactions for Tesco Bank customers.

John Bower, managing director, Europe, Bank Solutions, Fiserv comments: “Tesco has a history of bringing innovation to the markets it serves. Fiserv will focus its expertise to help Tesco transform several business processes, creating a best-in-class customer experience in financial services.”

The move comes after Tesco recently announced a partnership with Fortis, which will form a new motor and household insurance company.

Tesco Bank already offers credit cards, savings accounts and insurance via its Tesco Personal Finance (TPF) brand.

TPF was launched in 1997 as a joint venture between Tesco and Royal Bank of Scotland (RBS) and has 6 million customers in the UK, Ireland, Hungary and Poland. In July 2008, Tesco bought out RBS‘ 50% share in a deal worth £950 million.

Tesco plans to compete with High Street banks and hopes to take advantage of the lack of confidence in existing banks by attracting disillusioned customers.

It has also said it plans to offer mortgages in the near future, and is planning to build a telecoms business generating £2 billion a year of sales.

Tesco is the world’s third largest retailer and currently has a 30% share of Britain’s grocery market.

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