Tesco bank haschosen an off-the-shelf core banking systemfrom Fiserv as it moves towards being a full-service retail
bank.
Tesco Bank already offers general, motor, home, pet and travel
insurance, credit cards and personal loans, personal savings, and a
network of cash machines. It has more than six million
customers.
A core banking system will help it add services such as current
accounts.
According to research from Celent, banks will face growing
competition from non-bank financial service providers.
Celent expects "new players and new ways of doing business in
terms of alternative banking systems to start sprouting up". These
include retailers, phone companies and pre-paid card suppliers.
Tesco, like other non-bank financial service providers, hopes to
take advantage of the poor reputation of banks during the
recession.
Tesco is also aiming for turnover of £2bn a year from telecoms
services after
signing a deal with Cable & Wireless. The retailer will
offer broadband and telephone packages with competitive pricing
under the five-year deal with C&W.
