Tandem Bank is strengthening its strategy to build the UK’s greener, digital bank with the acquisition of Loop, the fast-growing socially-conscious money sharing app.
With Tandem’s focus on helping consumers save, borrow and spend a little bit greener, the addition of Loop to the bank’s award-winning digital offer will give customers a unique way to borrow and lend from each other, while supporting the transition to a low carbon economy.
Launched in early 2022, Loop is the UK’s first social network app focused exclusively on helping friends and family to easily and safely lend and borrow money with each other.
Designed to revolutionise the informal money sharing market and break the social taboos around money sharing, Loop helps users avoid expensive bank overdraft charges - which are estimated to make traditional banks over £2bn in profit each year.
Almost six million people are borrowing from friends and family each month, with an estimated £12.5bn of money being shared informally every year.
In addition, there are approximately £10bn of overdrafts outstanding at any one time, with around 30% of outstanding balances below £50 and over 40% are for less than a week.
Since its launch, Loop has targeted young professionals and students, reaching around 2 million people through its social and digital activities. Its successful social media campaigns in its early growth phase have seen the app become the number one financial services brand on Tik Tok1.
Loop will continue to operate as a standalone app and brand, with plans to embed Tandem products and features in the Loop app, offering users access to a wider range of savings and lending services.
Tandem’s Chief Executive, Alex Mollart, commented:
“Tandem is on a mission to build the UK’s greener, digital bank – offering customers more sustainable ways to save, borrow and spend. The addition of Loop to our award-winning digital product range fits perfectly with our strategy.
“Loop’s unique approach to money sharing offers users a real alternative to expensive overdrafts. Given the app’s early success among Gen-Z users, the acquisition of Loop gives us a fantastic opportunity to grow Tandem’s customer base among a generation of climate-conscious consumers.”
The acquisition of Loop follows a year of significant transformation for Tandem Bank.
In early 2022, Tandem acquired leading consumer finance lender Oplo. This led to significant growth in the bank’s lending assets, as well as the bank reaching profitability and refocusing its strategy on building the UK’s greener, digital bank.
Following the acquisition of Oplo and breaking into profitability, other major milestones for the award-winning fintech have included a full rebrand, the launch of several new products and propositions, as well as a number of new senior appointments.
1Rating based on campaign views, October 2022