Convoy Global, a retail financial services group, has agreed to invest £15m (HK$153.8m) in UK digital financial services and virtual bank provider Tandem.
Image: Convoy Global Chief Digital Officer Patrick Ho, Tandem CEO and co-founder Ricky Knox, and Convoy Global Venture Capital Head Michael Yap. Photo: Courtesy of Convoy Global Holdings Limited.
The investment by Convoy in Tandem is within the framework of a partnership between the two companies.
With this investment, Convoy will focus on transformational opportunities of fintech and businesses. The partnership with Tandem builds on its existing investments in Nutmeg in the UK and CurrencyFair in the Republic of Ireland.
Convoy stated that it intends to use Tandem’s technology to offer digital financial services to Hong Kong consumers and in time, to launch a virtual bank, depending on regulatory approval and the grant of a banking license.
Tandem was established in 2013 by Ricky Knox and Matt Cooper, to provide virtual banking services in the UK and operates with full bank license under the supervision of the Prudential Regulation Authority (PRA) of the Bank of England.
Tandem Bank is claimed to be a pure digital bank from the ground up and offers a full suite of retail banking services such as deposits, mortgages, loans and credit cards combined with an integrated money management service offering.
The digital bank uses a data-driven cash management and wealth management structures to offer customers high value-added services, including cash management, savings, debt management and AI-driven financial planning.
Convoy Group president and executive director Ng Wing-Fai said: “By securing a series of strategic fintech investments, we are now fully equipped to achieve our business vision to provide innovative services and experience to both current and prospective customers.
“Our partnership with Tandem is the culmination of an intense research and negotiation process. It underlines our aim to bring the most comprehensive financial management services and cutting-edge cybersecurity technology to Hong Kong, and also highlights our commitment to leading the development of the fintech sector in Hong Kong.”
In January this year, Tandem acquired Harrods Bank, which brought with it £80m of capital, a sizeable mortgage book and £400m of deposits, which has placed the firm in a prime position to launch a full-service and digital-only bank.
Tandem CEO and co-founder Ricky Knox said: “We see a powerful opportunity to significantly expand our presence in Asia, one of the most vibrant virtual banking markets, and begin the expansion of our banking services across the globe.
“The UK has been leading the virtual banking revolution and it is time to capitalise on the wave of changing regulation around the world – and improve more customers’ lives with money.”