Superquinn and TSB join forces on in-store bank

Tusa, the Republic's first in-store bank, opened yesterday, undercutting rivals with low rates for mortgages and credit card loans. A joint venture by grocery chain Superquinn and TSB Bank, the new company promised to expand its branch network rapidly and remain open 59 hours a week.

Tusa said it was offering a full range of personal banking services, including current accounts, credit card facilities, personal loans, mortgages and savings plans. Insurance and pension products are also planned.

Superquinn and TSB Bank each holds a 50 per cent stake in the new bank; the initial investment in the venture is more than £5 million (€6.4 million).

The bank said it was introducing a unique "six-function card" which allows customers to withdraw cash from automatic teller machines, spend money through the Laser system, guarantee cheques, register telephone banking transactions and log points on Superquinn's customer loyalty schemes.

"You don't need to produce a deck of cards to do banking - your Tusa card will do it all," said the bank's chief executive, Mr Brian Mahony. He said Tusa was offering the lowest mortgage rate in the State, an APR of 3.8 per cent and the lowest interest charge on credit card debt at 17.5 per cent APR.

Mr Mahony said: "We are not discounting for new customers while charging existing customers more. We have the same low rate for everyone."

The bank said it would provide "highly flexible term loans" at 10.4 per cent APR.

Executives said Tusa's fees were structured to divert customers away from doing their banking at the counter and encourage electronic transactions. The bank will not charge maintenance charges for account holders.

Tusa will offer a 24-hour telephone operation and plans to offer fully-transactional Internet banking within a year. Bank customers will be able to use their Tusa cards to withdraw money at Superquinn checkouts.

Superquinn's founder, Senator Feargal Quinn, admitted yesterday that when he first heard the idea of an in-store bank, he thought it was "mad". On reflection, he added, and given the success of similar ventures in the United States, it would offer a superb service to customers.

The bank opened yesterday in the Superquinn store at Lucan, Co Dublin, and plans to operate at stores in Knocklyon and Blanchardstown in Dublin, Dundalk, Co Louth and Clonmel, Co Tipperary, this month. By the end of next year, Mr Quinn said, all 17 Superquinn stores would have their own Tusa outlet.

Tusa said the customer information gathered electronically on its six-function card would kept separately, and would under no circumstances be passed from one company in the partnership to another, or to outside agencies.

Mr Mahony (36) is a chartered management accountant. Before being appointed chief executive of the new bank, he was TSB's strategic development manager. From Bishopstown, Cork, he is a graduate of University College Dublin and has an MBA from the Manchester Business School.