Digital lender Tandem Bank has decided to purchase consumer lender Oplo, leading to the formation of a £1.2bn digital bank in the UK.
Tandem did not disclose financial details of the deal, which received regulatory nod and will close before the end of this month.
Oplo will expand Tandem’s product portfolio across consumer lending space such as first and second charge mortgages, personal lending, home improvement loans and car finance.
This acquisition will also enhance Tandem’s range of savings products.
The combined entity will have £230m in green loans, £775m in deposits and over 171,000 customers serviced by 500 employees.
Tandem Group CEO Susie Aliker said: “This is a really exciting moment for Tandem – by combining with Oplo we will create a bank totally focused on helping our customers to make fairer and greener financial choices.
“With our flexible digital platform, new enlarged scale and strong profitability, Tandem is fantastically well positioned to become one of the UK’s leading digital banks.”
The two businesses are portfolio companies of Pollen Street Capital. Aliker will lead the entity created upon the merger of the two.
Tandem Bank deputy CEO and Oplo founder and CEO Alex Mollart said: “We have built Oplo into one of the UK’s leading consumer lenders with a clear mission to offer financially fair lending products, helping hard-working people across the UK who are often overlooked and underserved by traditional lenders.
“Joining forces with Tandem creates a powerful new force which will enable us to launch smart products and develop new technologies to support even more consumers in their everyday financial lives.”