UK challenger bank Tandem has secured USD 79 million in funding to boost its business.
Tandem didn't disclose details around what the funding will be used for, but it will likely go toward streamlining its existing growth efforts Tandem previously announced plans to launch in Hong Kong by the end of 2020. It also partnered with Hong Kong-based financial services group Convoy Global Holdings in November 2019 to set itself up for further expansion, per Reuters.
Tandem could use the funding to grow its product portfolio ahead of going public. Tandem plans to use open banking to offer personalized products. For example, it intends to launch a mortgage product that uses aggregated financial data to more accurately gauge applicants' creditworthiness, which will allow it to offer mortgages to consumers who may not have been accepted by other lenders due to a lack of credit history, according to Business Insider.
Tandem offers automated savings, account aggregation, and two credit cards for consumers without strong credit. It uses advanced analytics of customer transactions to better understand customers' spending habits and build new products. The neobank acquired Harrods Bank in 2018 — the banking arm of the luxury UK retailer — through which it obtained a banking license.
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