Tesco is to extend its personal finance operation with the launch of a customer service centre in Glasgow.

The grocer said 800 new jobs will be created. The operation, at Broadway One in the city centre, is due to open in the first half of next year.

Tesco Personal Finance has received a £5m grant from the Scottish Government to help fund the new centre.

Chancellor Alistair Darling said: “This is a strong vote of confidence in Scotland’s financial services industry from one of the UK’s leading companies. And it shows that even at this difficult time, the Scottish and wider UK economy is still creating high quality jobs”.

Edinburgh-based Tesco Personal Finance has 6 million customer accounts and offers 28 different financial products and services, including general insurance and personal loans.

Tesco plans to extend its personal finance business to offer full banking facilities.