Tesco eatblishes Banks

One of the world's leading retail chain announced to expand its already broad portfolio. Tesco has promised that to end of the year its 30 new banks will be opened in Tesco stores.

According to experts it is not a bad idea setting up own-branded banks, when the traditional financial institutions are in great trouble. The interconnection of retail and banking can be a point out of the economic crisis. A commercial company is expected to give credit to the customers faster and on lower bank interest rate, which credit will be spent by the customers in one of the company's stores. So the most important thing is not to become a profitable bank, but to encourage the customers for more purchases. Of course, it can not be ruled out that the chains of stores will develop a sizeable bank clientele based on its own clientele and reduced financial services, then sell the whole clientele of the bank, and the whole network to another bank – reports Origo.