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Tesco’s has successfully secured a beachhead in the financial services arena and the far-sighted Sir Terry Leahy has every reason to expect big things. Benny Higgins, Shaun Doherty et al have excellent track records within RBS and HBOS and have a thorough understanding of the retail banking market. Coupled with the deep financial resources, instant branch network, ability to cross sell products to existing customers and utilise established loyalty programmes through Tesco Clubcard they make a formidable new challenger to the established players.
Under normal circumstances I would back the likes of RBS, Santander and Lloyds to fight them off however public trust in the old guard has suffered greatly in the recent credit crunch turmoil whilst dependable Tesco is a shining beacon of reliability on the highstreet. If he gets the proposition right Benny Higgins could push Tesco into a major provider of consumer banking products in a very short space of time whilst current tier one banks are inwardly distracted with major change and integration programmes, they would be wise to stop and check their rear view mirrors.
Andrew McIntee is a Director and Head of the Financial Services Practice at Interim Partners.
