Could a supermarket become a supermortgage provider?
Have we just seen another example of the nationâ€™s disillusionment with big banks with the launch of leading supermarket, Tesco’s, own variety of mortgages? We think so, and we also think it represents a growing rebellion against those banks by large and small institutions, as well as the private individual.
A couple of weeks ago we talked about the launch of the Bank of Dave, and how disillusionment with high street banking can breed entrepreneurialism and innovation. And at the other end of the scale, this move could represent a similar frustration, this time by one of the worldâ€™s largest organisations which has spotted a large gap in a somewhat under crowded and under delivering market.
While Tescoâ€™s selection of mortgages and rates are neither market leading or particularly newsworthy, they do offer those of us who are disenchanted with the high street banks, an alternative. However, while weâ€™re sure this will give the sector a much needed shake up, itâ€™ll take a lot to convince us that this is not just another â€˜big bankâ€™ clone vying for a share of an already frustrated market.
We will of course be keeping a keen eye on Tesco’s progress, and whether it can convert its success in the fast moving consumer goods market to a success in the housing market.
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