Tan­dem plans flota­tion amid ex­pan­sion of dig­i­tal bank­ing

The Daily Telegraph - Business - - Business - By Lucy Bur­ton and Han­nah Boland

DIG­I­TAL bank Tan­dem has un­veiled plans to float on the stock mar­ket.

Tan­dem said an ini­tial pub­lic of­fer­ing would “make sense” and that there was “po­ten­tial for mul­ti­ple uni­corn val­u­a­tions in the dig­i­tal bank­ing space, as ev­i­denced by re­cent cap­i­tal raises”.

It could go pub­lic within the next three to five years, mar­ket­ing di­rec­tor Matt Ford told PA. Tan­dem is one of a grow­ing num­ber of on­line chal­lenger banks, along­side Star­ling, Revo­lut and Monzo, that have sprung up in the wake of the fi­nan­cial cri­sis.

Re­cently, those com­pa­nies have been ex­pand­ing their teams. Tan­dem is look­ing to hire 60 peo­ple on top of the 120 staff it cur­rently has within the next 12 months. It comes as the boss of Star­ling also pledged to ex­pand the com­pany’s work­force, by 40pc this year, as it seeks to be­come “the Ama­zon of bank­ing”. Founder Anne Bo­den said that the east Lon­don-based startup, which has be­come one of Bri­tain’s big­gest fi­nan­cial tech­nol­ogy com­pa­nies, will em­bark on a hir­ing spree in the com­ing months as it fights to com­pete with tra­di­tional high street lenders.

Her plan is to dou­ble the num­ber of en­gi­neer­ing staff over the next 18 months and swell the mo­bile-only bank’s work­force from 325 peo­ple to 450 by the end of this year.

Ms Bo­den, who pre­vi­ously worked at Lloyds, Stan­dard Char­tered, UBS and RBS, set up Star­ling in 2014 in an at­tempt to snatch mar­ket share from the UK’s high street in­cum­bents.

It has since grown rapidly, count­ing over 400,000 cus­tomers in 2018 in­clud­ing the Depart­ment for Work and Pen­sions, which uses it to process pay­ments. She last year de­scribed the busi­ness as “the Ama­zon of bank­ing”.

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