Sainsbury’s has announced plans to wind down its banking division as part of a “food first” focus.
The company’s move to focus its efforts on the retail business could affect its 1.9 million Sainsbury’s Bank customers in the future.
The supermarket said it was exploring a number of options as part of a “phased withdrawal” from the banking business.
It could result in products being outsourced to other providers, which it already does with insurance products, and through which it offers Argos credit cards and loans to around 2.1 million customers.
Sainsbury’s said it was exploring a number of options as part of a “phased withdrawal” from the banking business
PA
The company currently offers loans, credit cards and savings accounts from its own bank.
Sainsbury’s said it would be “business as usual for now” at the bank.
Nothing will immediately change for customers or the products and services being offered.
There isn’t a timeline for how long the exit will take.
Simon Roberts, chief executive of Sainsbury’s, said: “We have been clear since we launched our food first strategy in 2020 that we would concentrate our efforts on our core retail businesses and today’s announcement reflects that strategic focus.
“We will, of course, communicate directly to customers well in advance of any changes to their products and services.”
More to follow…
