Standard Life Bank, the savings and mortgage account provider, is planning to offer personal loans and a credit card to make use of its deposit base.
The telephone bank was set up 18 months ago by mutual life assurer Standard Life. It offers a high-interest savings account. Since then, it has gained about 4bn in deposits.
A Standard Life spokeswoman says: “We needed a base of money before we could diversify. We are now in a position to offer a loan and credit card. Ideally we would launch them by October.”
The spokeswoman says details about the new products have yet to be finalised. The move comes shortly after Egg, a competitor to Standard Life, announced it is considering using its 5bn deposit base to launch a credit card (MW May 6). Egg is also considering a current account.
Meanwhile, People’s Bank of Connecticut, the US bank which set up a UK credit card operation three years ago, is to offer a “competitive” loan from autumn. People’s Bank marketing manager Lisa Hill-Whyte, says: “Our credit card operation has given us a customer base and the loan seemed the logical next step.”