Harrods Bank has signed an agreement to be taken over by digital bank Tandem in a move that will see the 124-year withdrawn from the market.
Tandem’s aim is to secure a banking license enabling it to offer products like savings accounts, although the purchase is subject to regulatory approval.
Once the move goes through, Tandem says it will work with all parties involved to provide a smooth ownership transition.
Ricky Knox, Tandem’s founder, commented: “Tandem has been built from the ground-up with the help of over 11,000 co-founders, who have helped us shape products and services that really make a difference to their lives. This acquisition will allow us to scale the business and ensure we can introduce as many people as possible to a new way of banking.”
Harrods Bank provided mortgage finance through clients directly and a limited panel of mortgage brokers. It offered residential mortgages between £1 million and £10 million and buy-to-let loans between £1 million and £5 million. It also offered personal loans, savings accounts and gold bullion services.