Tesco wants 10 percent share of financial market

It has been reported that the supermarket giant Tesco is looking to take a 10 percent share of the financial market as it continues its launch into retail banking. Over the years Tesco, like a number of other leading supermarkets, has broken into a range of different fields, and retail banking is something that Tesco has been looking into breaking into for some time.

In 2008 Tesco revealed its plans to break into retail banking, and this decision was welcomed by many given the problems that had arisen with traditional High Street banking giants. Last year saw the supermarket rebrand its Tesco Personal Finance brand to Tesco Bank in preparation for the move.

Already Tesco is now enjoying a reputation as the UK’s largest supermarket bank, and has around six million customers using a range of around twenty eight financial products ranging from loans and credit cards to insurance services. The supermarket wants to extend these services and build upon a customer base in current accounts, mortgages, and other financial products.

If Tesco does manage to reach its goal of taking a 10 percent share of the financial market it will be on level pegging with Abbey, which was recently renamed Santander after being taken over by the Spanish banking giant.

Officials have said that the fact that Tesco is a household name puts it in an excellent position to enter into the banking sector, as consumer confidence in its services may already be high. The move for a greater number of entrants into the banking sector is also something that is being encouraged by the government.

Many people have lost confidence in the traditional banking system over the past couple of years, and this could spell good news for new entrants to the market such as Tesco.