Ricky Knox, CEO and founder, Tandem

Tandem, the digital challenger bank, is opening up a crowdfunding round of up to £4 million ($5.6 million) for previous investors, following the buy-out of Harrods Bank,  which was retired completely.

According to the founder and CEO Ricky Knox, the bank was extending an invitation to the 2,000 backers that had supported the bank in previous rounds, to help support the bank’s growth and “look after the community of investors that have helped us so much”.

The acquisition of Harrods Bank, previously controlled by Mohamed Al Fayed, added around 10,000 new customers doubling its base to around 21,000. With the acquisition, Tandem gained £400 million ($562 million) in deposits, £375 million ($527 million) in mortgages and £80 million ($112 million) of capital, according to reports.

Read more: Tandem Bank completes acquisition of Harrods Bank, gains £400m in deposits

Rumour has it that former Barclays chief Bob Diamond is looking into taking a sizeable stake in the banks.

Most notably, Tandem regained its banking licence through the acquisition. It lost the licence in 2016 when Sanpower, the Chinese owners of House of Fraser, failed to deliver on a planned £35m investment.

Read more: Tandem Bank signs AI deal with Personetics

by Henry Vilar
Henry is Junior Reporter at IBS Intelligence, follow him on Twitter or contact him at: henryv@ibsintelligence.com
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