Cash sharing app Loop Cash has been acquired by Tandem Financial institution for an undisclosed sum.
The information was damaged by AltFi this morning, which mentioned that Loop would proceed to function beneath its personal model however with Tandem integrating its personal merchandise and options into the Loop providing over time.
Loop targets younger professionals and college students, reaching round two million individuals by its social and digital actions.
“Tandem is on a mission to construct the UK’s greener, digital financial institution – providing clients extra sustainable methods to avoid wasting, borrow and spend. The addition of Loop to our award-winning digital product vary suits completely with our technique,” Tandem Financial institution chief government Alex Mollart mentioned in an announcement.
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“Loop’s distinctive strategy to cash sharing gives customers an actual various to costly overdrafts. Given the app’s early success amongst gen-z customers, the acquisition of Loop provides us a improbable alternative to develop Tandem’s buyer base amongst a era of climate-conscious customers”, he added.
Loop entered beta testing in early December 2021 and launched in 2022. It was launched by Tandem Financial institution chair, and former TSB Financial institution chief government, Paul Pester alongside former CompareTheMarket boss Matthew Donaldson, who was additionally the founding father of the Metro Financial institution and Atom Financial institution.
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AltFi reviews that Tandem’s board is working to keep away from potential conflicts of curiosity attributable to Loop’s hyperlinks to the financial institution’s executives, notably Pester. Appointments to the place of chair have been handed to Tandem senior unbiased director David Fisher.
The acquisition follows Tandem’s deal to accumulate shopper lender Oplo final 12 months.
Peer-to-Peer Finance Information has reached out to each Loop Cash and Tandem for remark.
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