Sainsbury's Bank to stop offering loans, credit cards and savings accounts

18 January 2024 , 08:16

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Sainsbury's has announced plans to shut down its banking services (Image: PA Archive/PA Images)

Sainsbury's has announced plans to gradually shut down its banking services, focusing more on its retail business.

This could impact its 1.9 million Sainsbury's Bank customers in the future. The supermarket giant is considering various options for a "phased withdrawal" from the banking sector.

The changes might mean that some products are outsourced to other providers, similar to their insurance products. They currently offer Argos credit cards and loans to about 2.1 million customers through this method.

Despite these changes, Sainsbury's Bank will continue to offer loans, credit cards and savings accounts for now. The company reassured customers that it will be "business as usual for now", with no immediate changes to their products or services.

Simon Roberts, chief executive of Sainsbury's, said: "We have been clear since we launched our food first strategy in 2020 that we would concentrate our efforts on our core retail businesses and today's announcement reflects that strategic focus." He added: "We will, of course, communicate directly to customers well in advance of any changes to their products and services."

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In related news, Sainsbury's Bank chief executive Jim Brown is set to retire amid the wind-down of the division. Robert Mulhall, the former head of Allied Irish Bank's UK division, will take over his role at the end of March to oversee the changes.

* An AI tool was used to add an extra layer to the editing process for this story. You can report any errors to [email protected]

Lawrence Matheson