Loop Money acquired by Tandem Bank
Money sharing app Loop Money has been acquired by Tandem Bank for an undisclosed sum.
The news was broken by AltFi this morning, which said that Loop would continue to operate under its own brand but with Tandem integrating its own products and features into the Loop offering over time.
Loop targets young professionals and students, reaching around two million people through its social and digital activities.
“Tandem is on a mission to build the UK’s greener, digital bank – offering customers more sustainable ways to save, borrow and spend. The addition of Loop to our award-winning digital product range fits perfectly with our strategy,” Tandem Bank chief executive Alex Mollart said in a statement.
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“Loop’s unique approach to money sharing offers users a real alternative to expensive overdrafts. Given the app’s early success among gen-z users, the acquisition of Loop gives us a fantastic opportunity to grow Tandem’s customer base among a generation of climate-conscious consumers”, he added.
Loop entered beta testing in early December 2021 and launched in 2022. It was launched by Tandem Bank chair, and former TSB Bank chief executive, Paul Pester alongside former CompareTheMarket boss Matthew Donaldson, who was also the founder of the Metro Bank and Atom Bank.
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AltFi reports that Tandem’s board is working to avoid potential conflicts of interest due to Loop’s links to the bank’s executives, particularly Pester. Appointments to the position of chair have been handed to Tandem senior independent director David Fisher.
The acquisition follows Tandem’s deal to acquire consumer lender Oplo last year.
Peer-to-Peer Finance News has reached out to both Loop Money and Tandem for comment.
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