THE supermarket banking revolution in Britain is gathering pace with the decision by Tesco to drop its association with NatWest and join forces with the Royal Bank of Scotland to provide a comprehensive range of financial services for shoppers.
Also included in the joint venture are the Royal's highly successful motor insurance offshoot Direct Line and leading life assurance mutual Scottish Life. Around nine million Tesco shoppers holding its Clubcard loyalty card will be offered financial products ranging from savings accounts to motor insurance, with personal insurance and household mortgages introduced later.
An internationally accepted credit card will be launched in the summer. Purchases with the credit card will give money off points for Clubcard holders to use at Tesco outlets.
The launch of the Tesco bank follows this week's Bank of England authorisation of the projected Sainsbury's bank being formed with Bank of Scotland. Supermarket group Safeway is getting in the banking business with Abbey National.
With Tesco and Sainsbury's opening up in Northern Ireland - and Safeway possibly through purchase of the Wellworth chain - other Irish supermarket groups such as the Quinnsworth/Crazy Prices business owned by Associated British Foods will be under pressure to offer similar banking facilities to their customers.
