Thanks to a £15m ($19.2m) deal with Hong Kong-based Convoy, Tandem expansion is underway.
Tandem expansion is set to hit Hong Kong and is the digital bank’s first move overseas. It would be the first purely virtual bank in Hong Kong and will be built on Tandem’s platform.
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Furthermore, the initial investment from Convoy, a retail financial services company, would be focused on scale. In addition, it would be used to shape new products for its customers.
Tandem expansion – in location and in customers
According to Tandem, it serves 300,000 customers in the UK and is looking to expand its base considerably. The new bank as part of the Tandem expansion is estimated to launch in 2019.
Ricky Knox, Tandem CEO, says: “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 it’s time to capitalise on the wave of changing regulation around the world – and improve more customers’ lives with money.”
With this deal, Convoy are primed for a virtual banking license from the HKMA to build a digital-only bank alongside Tandem. This bank would offer Hong Kong consumers the same services that Tandem customers in the UK are given.
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By GlobalDataMr. Ng Wing Fai, Group President & Executive Director of Convoy Global, says: “We have been impressed by Tandem’s persistent technology innovation and rapid development of its business. Tandem has the most capable technology and engineering team amongst all virtual banks we have seen, especially in the area of product innovation and cybersecurity. We expect that this partnership between Tandem and Convoy will bring Tandem’s technology and capabilities to consumers in the Greater Bay Area, availing them to the winning customer proposition enjoyed by Tandem’s customers in the U.K.”
Tandem has recently begun to expand its product range in 2018. So far, these include an auto-saving service and a fixed savings account. However, it does not offer a current account.
