Tesco plans current accounts and mortgages

Tesco chief executive of retailing services Andrew Higginson said it would be “at least a year before we see a Tesco current account” and that the retailer will go into mortgages “in due course”.

Tesco revealed in July that it would acquire the remaining 50 per cent of Tesco Personal Finance from RBS for just under£1 billion.

Higginson said: “The opportunities in banking are bigger now than when we first announced the deal [with Royal Bank of Scotland (RBS)]. Customers are looking for a brand they can trust. I’ve lost count of the amount of people who have asked me where it is safe to put their money.”

“We’ve deliberately been cautious on banking, but we’ve got 11 years’ experience now and offering services such as current accounts helps create a relationship with customers.”

Tesco chief executive Sir Terry Leahy said: “Consumer confidence has affected the market, but what’s more important is that banks get back to doing their jobs and have the ability to lend once again.

“It’s not helpful to speculate how bad it [the market] could get – what’s important is to trade what’s in front of you.”