Member Article

Sainsbury’s take control of banking arm

Sainsbury’s has taken full control of its banking arm from Lloyds Banking Group for £248m.

The grocer is keen to build customer loyalty among shoppers, and wants to capitalise on the growing opportunities in the banking sector prompted by consumer distrust of traditional names.

Sainsbury’s Bank chief executive, Peter Griffiths, will lead the venture which will have a separate board with financial experience.

Justin King, chief executive said: “This is an exciting transaction for Sainsbury’s which has the potential to deliver significant benefits to our shareholders, customers and colleagues.

“We have 23 million transactions each week by customers who know and trust the Sainsbury’s brand. We see a great opportunity to increase the number of Bank customers by offering accessible, high quality financial services products which reward customers who bank and shop with us.

“We expect the Bank to become an important source of profit diversification and growth, building on the strengths of our core business.”

Sainsbury’s will use Florida payments technology provider FIS, to facilitate their retail banking operations.

This was posted in Bdaily's Members' News section by Tom Keighley .