UK-based challenger bank Tandem has reportedly raised £60m in funding alongside its new plans to purchase a lending company which helps consumers buy solar panels.
The fresh funds come from Qatar Investment Authority, according to a report from Reuters which cites sources familiar with the matter.
Tandem offers a digital banking app and credit card which enables consumers to better manage their spending. The app helps users make savings through its automated round up system which will round up all transactions to the nearest pound and put the money into savings.
Additionally, Tandem analyses and predicts what the customer can afford to save and will automatically move it into savings.
Last year, the challenger bank revealed its plans for international expansion beginning with a new office in Hong Kong.
The UK challenger bank market has a lot of competition, with the likes of Monzo, Revolut, Starling and Atom Bank.
Revolut recently became a $5.5bn valued company, after it closed a $500m Series D round from TCV and other venture investors. While its competitor, Monzo, hit a £2bn valuation in the summer of 2019 after a £113m funding round.
While British neobanks gained a combined six million new customers in the last six months of 2019, they are struggling to make profits. According to a report from Accenture, stated that UK challenger banks are struggling, with them losing between £5 and £15 per customer.
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