Tesco (TSCO) has announced plans to walk away from retail banking after revealing that the vast majority of its banking customers do not use their accounts.
The retail giant has said that all customers will soon receive a letter asking them to withdraw all their money and change any standing orders or direct debits from the accounts before November 30.
The bank has under a quarter of a million accounts currently open, however, it estimates that one in eight customers are using these as their primary account.
Most of the accounts either see “limited activity”, Tesco Bank said, or are being used as customers’ savings pots.
“The way customers shop and manage their money is constantly evolving and we are committed to developing products and services which align with the needs of Tesco shoppers,” said Tesco Bank chief executive Gerry Mallon.
“With so few of our current account customers using it as their primary account, we want to support them to find a suitable alternative dependent on their circumstances.
Tesco Bank provides more than five million customers with banking and insurance products and will continue to offer credit cards and loans.