Tandem plans flotation amid expansion of digital banking
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”.