Sainsbury’s hunts agency to launch bank operation>

Sainsbury’s is understood to have drawn up a shortlist of agencies to handle the multimillion pound launch campaign for its new banking operation.

The grocery multiple has in-structed agencies to come up with ideas for the name for the new venture, as well as the launch drive.

Sainsbury’s announced plans to open a bank some weeks ago and will collaborate with the Bank of Scotland. The supermarket will own 55 per cent of the business, with the Bank of Scotland controlling the rest.

Saatchi & Saatchi and M&C Saatchi are both thought to have been working on the project for a few weeks, but it is not known which other agencies are on the shortlist.

The bank is scheduled to open next year and will offer credit cards and accounts. It will move into cheque books, personal loans, savings, Visa cards, mortgages and pensions at a later date.

The move is an attempt to upstage Tesco, which launched its Clubcard Plus debit card in June. Tesco pays five per cent interest on accounts in credit. Safeway, too, has announced plans to collaborate with Abbey National on a payment card.

Last year, Tesco overtook Sainsbury’s as the country’s biggest grocer in terms of market share. In 1995, Sainsbury’s posted its first fall in profits for more than 20 years.