Tandem Bank hits 100,000 user milestone, after troubled year comes to an end

It seems another digital bank is on the rise, as Tandem has today announced hitting 100,000 customers just three months after launching its first product.

Though the number represents just registered users and not active customers of the banking app, Tandem has said that it sees approximately 82 per cent of that number using their accounts monthly.

The news is a positive sign for Tandem, after experiencing a tumultuous 2017 as a result of a failed fundraise. However in January this year it purchased Harrods Bank, and acquired a full banking license in the process.

As a result of the purchase, Tandem also gained Harrods Bank’s 11,000 customer accounts, as well as £80m of capital, and over £350m in deposits.

The bank currently offers one 0.5 per cent cashback credit card product and a fixed saver account, with an instant access product planned for release later this year. Across its three fixed saver tiers, Tandem has said it currently holds more than £10m in deposits from its users.

Tandem also recently acquired money management startup Pariti, which helps users get a view of their finances by connecting to their bank accounts and helping them to control their spending.

“With new products on the way we’re targeting major growth,” said Ricky Knox, CEO of Tandem Bank. “There is a lot of noise surrounding the legacy banks moving into the digital only challenger market, which is great. However, we are moving at twice the pace and as a small agile organisation we are accelerating as we speak.”