Tesco yet to decide on bank service

NO decision has been made on whether financial services to be offered in Tesco outlets in Britain this year will be available to shoppers in Ireland, a spokesman for the multiple said yesterday.

"It's far, far too early. We are only just beginning to assess what services should be available in Britain," the spokesman said.

However, he said the sale of personal finance services in Irish outlets could not be ruled out. Last week, Tesco acquired Quinnsworth, Crazy Prices and Stewarts for £630 million sterling.

Tesco Personal Finance, a new banking operation established by Tesco and the Royal Bank of Scotland, is set to launch its first major project, the Tesco credit card in July. It is likely to seek a full banking licence from the Bank of England in the next few months.

The company aims to develop, into a "meaningful business very quickly, providing a full range of personal finance services and products". Own-brand Tesco cash machines will appear in British stores this year and personal finance products will be tested and put on the market during 1998.

A spokesman said the company was still devising a strategic plan for Ireland following its recent purchase of Quinnsworth/Crazy Prices outlets in the Republic and the Stewarts supermarket chain and Wine Barrel off-licences in the North.

Britain was a different market. The company would have to learn about the Irish market and what was feasible and possible here, the spokesman said. There might be issues to do with the regulation off the banking sector involved and these had not been looked at.

"No decision has been made to rebrand all the Irish business. This is going to be an evolutionary process rather than a revolutionary Tesco Personal Finance is in negotiation with the main credits card companies to find a partner for its credit card.

Ahead of the credit card launch Tesco is to add new features to its loyalty card scheme.

Insurance and savings products are also being looked at by Tesco.

A number of other British multiples have entered the personal finance market.