Tandem

London-based Tandem provides banking services to individuals via a mobile app, under its own banking license, with a focus on sustainable practices.

The company offers savings products which include ‘Fixed Savers’, which enable customers to directly transfer funds from other bank accounts to their Tandem account, by utilizing open banking technologies. These accounts are offered for periods of one to three years. The company also offers a ‘Instant Access Saver’ account which also supports green lending initiatives. It also operates in the credit space and offers ‘Green Loans’ and mortgages to customers via its platform as well as remortgage products through brokers.

Tandem has made several acquisitions over the years. In August 2020, in line with its sustainable focus, it acquired Allium Money, an alternative lender which provides financing options for customers to improve the energy efficiency of their homes. In January 2022, it acquired Oplo, a lender that provides credit to subprime borrowers. Through the acquisition, Tandem planned to leverage Oplo’s range of credit offerings to expand its product portfolio. The company also acquired peer-to-peer money sharing platform Loop in April 2023, through which it was to offer its customers the ability to borrow and lend from one another. Loop will continue to operate as an independent brand and app, with Tandem embedding its features onto its app.

Key customers and partnerships

As of December 2022, Tandem had 60,000 retail customers.

Tandem partnered with Raisin UK, an online savings comparison website for individuals in Europe and the US. Through which it aimed to expand its services and diversify its deposit channels.

Funding and financials

In July 2023, Tandem secured GBP 20 million in Tier-2 capital from Quilam Capital. The fresh funds were to be used toward expanding its business and sustainability-focused lending initiatives.

In FY 2022, the company generated a total income of GBP 71.0 million (~USD 89.0 million; up 382.0% YoY), and generated a net profit of GBP 481,000 (~USD 603,000) compared to a net loss of GBP 19.4 million (~USD 24.3 million) in the previous year, marking its first full year of profitable operations. As of June 2023, Tandem’s total loan book and deposit base stood at GBP 1.2 billion (~USD 1.5 billion) and GBP 1.8 billion (~USD 2.4 billion), respectively.