Tandem Bank has acquired Loop, a money-sharing app co-founded by the bank’s chairman, Paul Pester.
Launched in early 2022, Loop is a social network app designed specifically for helping friends and family lend and borrow money from one another. Pester collaborated with Anthony Thomson, founder of Metro Bank and Atom Bank, along with former CompareTheMarket chief Matthew Donaldson to establish Loop.
Since its inception, Loop has catered to young professionals and students, reaching around two million users through its social and digital marketing initiatives.
Loop will continue to operate as a standalone app and brand, with plans to integrate Tandem products and features into the Loop app, providing users with access to a broader range of savings and lending services.
Tandem’s chief executive, Alex Mollart, remarked, “Loop’s unique approach to money sharing offers users a genuine alternative to costly overdrafts. Given the app’s early success with Gen-Z users, acquiring Loop presents a fantastic opportunity to expand Tandem’s customer base among a generation of climate-conscious consumers.”
To prevent any conflict of interest during the acquisition, Pester recused himself from negotiations, which were managed by senior independent director David Fisher.
Previously the CEO of TSB, Pester left his position following a significant IT crisis that resulted in the bank being offline for several weeks.
The terms of the transaction were not disclosed.