The Tandem app, which helps people to manage their money, said the acquisition will provide GBP 80m of capital as well as a banking licence, although other financial terms were not disclosed.
The move comes after Tandem lost its banking licence from UK regulators in March after investment from a Chinese conglomerate was dropped. Tandem was due to receive GBP 29 million from House of Fraser, the UK department store chain that was bought by China’s Sanpower Group in 2014.
However, the bank said in March that House of Fraser had pulled its funding because of “uncertainty about whether China’s State Administration of Foreign Exchange would approve the transaction”. The acquisition of Harrods Bank, which is still subject to regulatory approval, means that Tandem will be able to offer savings accounts in the future.
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