Start-up digital bank Tandem is following up its takeover of Harrods Bank by asking investors that took part in a crowdfunding last year for up to an additional £4m.
Tandem completed its acquisition of Harrods Bank – the lender to the wealthy once controlled by Mohamed Al Fayed – earlier this month, in a deal that doubled its customer base to 21,000 and added £80m of capital.
The lender’s founder and chief executive Ricky Knox said the firm was inviting all 2,000 backers from its crowdfunding to invest further in order to help fuel growth and “look after the community of investors that have helped us so much”.
Mr Knox said there was no update on Tandem’s talks with former Barclays chief Bob Diamond about taking a possible stake in the firm.
Tandem believes the Harrods Bank tie-up will allow the firm to “accelerate growth massively”. It also regained its banking licence through the acquisition. It lost the licence in 2016 when Sanpower, the Chinese owners of House of Fraser, failed to deliver on a planned £35m investment.
Tandem also added a £375m mortgage book and more than £400m of deposits in the deal.
Harrods Bank was controlled by Mr Al-Fayed until the early 1990s, when it was forced to split from the luxury retailer after the Government deemed him and his brother not “fit and proper” people to run the bank.