(8 November 2004 – UK) British supermarkets’ assault on the banks continues with giant retailer Tesco saying it will begin offering mortgages and online banking capabilities.The news comes a week after rival supermarket chain Sainsbury’s launched a debit card based system which allows shoppers to transfer money into a savings account while shopping.
Tesco Personal Finance, which began in 1997 and is operated by Royal Bank of Scotland, aims to leverage its popular home shopping website to cross sell finance products to customers.
The operation will offer customers a three year discount mortgage at 4.75 percent interest. Customers can apply for the product either online or via telephone.
Tesco Personal Finance chief executive Ian Clink said most of the company’s customers came through picking up leaflets in stores and the internet was now driving new customers.