Barclays acquires major supermarket bank in deal affecting millions of customers

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Barclays purchases Tesco Bank's retail banking arm

Barclays has announced its acquisition of Tesco Bank's retail banking arm, a move that will impact over five million customers. The deal includes the transfer of approximately 2,800 staff members to Barclays.

Services to continue under the Tesco Bank name

Although Barclays will operate the services, they will continue to be branded under the Tesco Bank name. Customers will not need to take any action, and Tesco Bank will retain certain banking activities, such as insurance, ATMs, travel money, and gift cards.

Barclays to pay £600 million for credit cards, loans, deposits, and systems

Barclays is expected to pay around £600 million for Tesco Bank's credit cards, unsecured personal loans, deposits, and operating systems. Additionally, employees of Tesco Bank will gradually transfer to Barclays over time.

Impact on customers and protection

Customers of Tesco Bank are protected by the Financial Services Compensation Scheme (FSCS) with a maximum coverage of £85,000 per person in case of a bank failure. In the short term, customers are unlikely to experience significant changes.

Branch closures and industry challenges

This acquisition comes amidst a challenging time for banks in the UK. Many major lenders, including Barclays and Lloyds, have faced difficulties and have announced plans to close branches. The rise of online banking and the need to cut costs have driven these decisions.

References: The Sun

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