Digital-only challenger Tandem is moving ever closer to launch after agreeing a deal to acquire 100 per cent of Harrods Bank, subject to regulatory approval.

It has been a tough year so far for Tandem, which officially changed its name from Tandem Bank back in May, following the challenger bank’s decision to remove savings accounts from its offering.

Two months prior to this, the startup also missed a deadline for obtaining its banking licence when an investor – Sanpower, the Chinese conglomerate which owns House of Fraser – was forced to cancel a £29 million investment in the bank.

The proposed acquisition of Harrods Bank would bring about £80 million of capital into the business, according to Tandem.

In a blog post marking the announcement, Tandem stated: “We can accelerate our launch plans and start offering savings accounts soon. We will continue developing and rolling out our app and credit card as planned, with a little more spring in our step. When the deal is finalised, we’ll operate the whole business under the Tandem brand.”

The deal is expected to take a few months to finalise and is subject to regulatory approval.

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