Staff salaries are route to Tesco Bank “big player” status

Tesco could pay staff salaries in to Tesco Bank current accounts once launched in a move that would bolster the fledgling financial services division’s customer base by 400,000.

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Speaking at Marketing Week’s 1-2-1 Data Driven Marketing Summit in London, Tesco Bank’s head of analytics John Halpin said current accounts were necessary if it was going to compete with the major retail banks and mandating staff salaries would offer a significant opportunity.

He adds: “We could become one of the big players in the market just by our staff having an account.”

Some Co-operative Group staff had their wages paid into Co-operative Bank current accounts when Halpin worked at the company, he says, while bank staff routinely have wages paid in to their employers’ accounts.

Such a boost in customer numbers would offer Tesco Bank opportunities to cross sell the insurance, credit card, loan and savings accounts it already offers.

Tesco unveiled plans for its financial services unit to become a full service bank, including mortgages and current account, two years ago. It changed its name to Tesco Bank from Tesco Personal Finance to reflect its long-term aim.

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