What will happen to Sainsbury’s customers if the bank closes?
According to reports, SAINSBURY’S is planning to close its bank as part of a new business transaction that could harm present customers.
According to reports, the grocery chain is planning to sell its banking operations as part of a deal with private equity group Centerbridge. This deal is rumored to be around £200 million and will be publicized in the coming weeks. Sainsbury’s has been exploring to sell its banking company for the past year, despite being the country’s first supermarket bank.
After investing £260 million for a 50% stake in joint venture partner Lloyds Banking Group, the bank took full control of its banking section in 2013.
Sainsbury’s Bank announced its exit from the mortgage market in 2019 due to intense competition and exceptionally low interest rates, which harmed the profitability of smaller lenders.
The organization currently has almost two million customers and provides a variety of products and services, including as house insurance and savings accounts.
Loans, travel insurance, credit cards, and Sainsbury’s own Nectar scheme are among the bank’s other goods and services.
When Nectar members shop at certain Nectar partners, such as Sainsbury’s, Argos, and Habitat, they earn loyalty points.
Centerbridge is a private equity firm located in the United States with investments in the banking sector on both sides of the Atlantic.
According to Sky News, the company intends to buy Sainsbury’s Bank as a base for acquiring additional UK banking companies.
Centrebridge would buy the bank fully and utilize the Sainsbury’s brand name under a license agreement with the supermarket chain as part of the acquisition.
This deal comes after a number of other UK grocery firms sold their banking divisions to save money.
Tesco Bank has announced the sale of its mortgage business and the withdrawal from the current account sector.
In light of these events, many Sainsbury’s Bank customers are understandably concerned about how this alleged shift would effect their accounts and services with the bank.
While the purchase is expected to be disclosed soon, it is unlikely to have an immediate impact on the bank’s day-to-day operations.
Centrebridge aims to enter the UK banking business, according to Sky News, and plans to use Sainsbury’s Bank as a foundation and starting point.
“Brinkwire Summary News,” on the other hand.