INSUBCONTINENT EXCLUSIVE:
challenger bank founded by fintech veteran Ricky Knox, has rolled out its second banking product today with the addition of fixed term
The new offering enables customers to get a guaranteed interest rate if they deposit their money with Tandem over one, two or three years,
and follows the launch of the Tandem credit card in February.The fixed savings product itself looks pretty competitive and pits Tandem
against a whole host of incumbent and challenger banks
The interest rate starts at 1.8 percent for a one year deposit, all the way up to 2.3 percent if you commit to three years
Tandem if you deposit for five years
It will also be interesting to see how much competition surfaces once Raisin, the savings deposit marketplace, launches in the U.K.Like many
other consumer-facing fintechs, Tandem wants to become your financial control centre from which it can connect to and offer various
These are either products of its own, such as the new savings account or credit card, or through partnerships with other fintech startups
and more established providers.At the heart of this is the Tandem mobile app, which acts as a Personal Finance Manager (PFM), including
letting you aggregate your non-Tandem bank account data from other bank accounts or credit cards you might have, in addition to managing any
license back on track, and Harrods Bank was already in the deposits businesses
Having a banking license and a large amount of deposits on its balance sheet also sets Tandem up to begin balance sheet lending, which would
begin to form the basis of a proven banking business model.The challenger bank says it is also working on a second Tandem card, which I
understand will be a debit not credit card, and therefore act more like a current account
It is also working on an instant access savings product to complement the newly launched fixed term savings account.
