By Ryan Weeks on Tuesday 20 November 2018
The money comes from Hong Kong-based financial services firm Convoy.
Tandem has made a surprising lurch Eastward. The digital bank has struck a deal with Convoy, a financial services firm, to work together to launch a ‘virtual bank’ in Hong Kong.
The plan is to pair Tandem’s existing technology with Convoy’s distribution network and local expertise. The deal was sealed with an initial £15m investment by Convoy in Tandem.
Tandem will use the money to scale its existing operations as well as to build new products for customers. The bank is hoping to grow its customer base significantly both in the UK and overseas.
Convoy will leverage the deal to apply for a virtual banking licence from the HKMA, paving the way for the construction of a digital-only banking service in 2019. The services of the proposed bank will mirror those already offered by Tandem in the UK.
Tandem’s core offering is to aggregate a user’s bank account information into one place and to spin helpful insights and tips off the back of it. The firm secured its banking licence through the acquisition of Harrods Bank at the start of this year. Since then it has launched a number of savings and credit products.
Ricky Knox (pictured right-middle), CEO of Tandem, said in a statement: “We see a powerful opportunity to significantly expand our presence in Asia, one of the most vibrant digital banking markets, and begin the expansion of our banking services across the globe. The UK has been leading the digital banking revolution and its time to capitalise on the wave of changing regulation around the world – and improve more customers lives with money.”
