Tandem have just shared quite a big update on how they’re doing - not great
We recently learned that the planned second wave of investment from Fraser Financial Services Limited is, sadly, not completing due to the increasing limitations placed on Chinese firms investing money abroad. As a result, we have decided to pause our plans to offer savings accounts to customers in the short term.
This will not delay our launch to the market, with the app – which will allow customer to view all their money in one place and optimise their finances – still launching to the public in the coming months followed by credit cards later this year, subject to regulatory approval.
That is an absolute shocker! They only secured the funding very recently, then had to lay off staff as required by HoF, now it seems HoF are pulling out of the investment! That is some ball and chain they’ve been lumbered with. Will it even launch before collapse???
According to the two sources that spoke to Business Insider, House of Fraser wanted Tandem to lower its overheads. House of Fraser declined to comment.
Do you mean if I give you Tandem shares you will give me Monzo ones? or if I give you Monzo shares you will give me Tandem ones? Who would want Tandem shares?
They are currently as popular as Reichmarks were many years ago. Nobody wants them and you could only offload them offering a discount over original purchase price.
Our intention to voluntarily surrender the part of our regulatory permission to take deposits means that we won’t launch savings accounts as planned this summer. Those investors and Co-Founders that have already opened a savings account with us will receive their money back before the end of the week.
This won’t delay our launch to the market, with the app still launching to the public in the coming months, followed by credit cards later this year.
We will reapply for our deposit-taking permissions at some stage in the future. In the short-term, however, we are focused on launching our other products as soon as possible.
What has the response been from the regulators?
The PRA and FCA have been supportive throughout this process. We remain regulated by the FCA, as it was before this decision.
I guess that depends on their financial situation right now but assuming that’s ok, I don’t see any reason why they could switch to a fee based model, like Revolut’s to earn revenue & cover their costs for now…
