Loop is an alternative to the UK’s overdraft market.

Tandem Bank is working towards becoming the UK’s leading digital and sustainable bank with the acquisition of Loop, a fast-growing money sharing app. Loop offers a platform for borrowing and lending money among friends and family, allowing users to avoid expensive bank overdraft charges. With approximately £12.5 billion being shared informally each year in the UK, and £10 billion of overdrafts outstanding, Loop’s platform has the potential to revolutionize the way people manage their finances.

Since its launch in early 2022, Loop has targeted young professionals and students, reaching around 2 million people through social and digital activities. Its social media campaigns have been successful in growing its user base, making it the number one financial services brand on TikTok. (Tandem)

After the acquisition, Loop will remain an independent app and brand, but Tandem plans to integrate its products and features into the platform, enabling users to access a broader range of savings and lending services.

Tandem’s CEO, Alex Mollart, said that the acquisition of Loop meshes well with the bank’s strategy to build the UK’s leading digital and sustainable bank. Tandem’s focus on helping customers save, borrow, and spend sustainably aligns with Loop’s socially-conscious approach to money sharing.

Tandem perceives the acquisition as an excellent opportunity to expand its customer base among a demographic of environmentally conscious consumers. The acquisition of Loop follows Tandem Bank’s acquisition of leading consumer finance lender Oplo in early 2022. This has led to significant growth in the bank’s lending assets and profitability.

Tandem has since undergone a full rebrand, launched several new products and propositions, and made new senior appointments.

The acquisition of Loop is a significant step in Tandem’s objective to become the UK’s leading digital and sustainable bank.

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