UK challenger bank Tandem has launched its first banking product following its acquisition of Harrods Bank: a credit card that offers cashback on every purchase, as well as no exchange fees when spent abroad.

The offering is designed to work with Tandem’s Personal Finance Manager app, which the bank developed to plug into existing accounts and cards to gather spending information. Tandem plans a savings account launch later in the year, and the new credit offering appears to be preparing the ground.

Tandem’s card has a APR of 18.9%, which isn’t the lowest on the market today. Yet the bank claims not to be in it for the overcharge fees and will never “encourage customers to spend beyond their means”.

We took a close look at the lifestyle, values and spending behaviours of our customers and produced a card that helps you earn as you spend, spend abroad without worry, and borrow as it suits you,” said Sven Schindele, senior product manager at Tandem.

Related: Tandem signs AI deal with Personetics

“We hope our customers find the card a helpful companion in all situations in life at home and abroad.”

Deposit savings accounts is where Tandem plans to take its business model, though. Once the it has a fair number on the books it can begin to lend and carve itself a semi-traditional business channel.

Tandem completed its acquisition of Harrods Bank in January, granting it a full banking licence, as well as access to Harrods Bank customers and £80 million ($108 million) of capital. The challenger also gained a £375 million ($505 million) mortgage book and more than £400 million ($539 million) in deposits.

The challenger utilised Fiserv’s Agiliti platform in the back-end, though stresses that most of its front-end processes and operations are entirely built in-house.

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by Alex Hamilton
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