Asda expands personal finance business

Asda, the supermarket chain owned by Walmart, has unveiled plans to re-brand and expand its personal finance arm, conveniently taking advantage of widespread disatisfaction with banks following the recent LIBOR scandal and system failure at Natwest.

Asda Money will now sell a number of financial products including an unlimited cashback credit card, currency exchange and insurance, although it is not planning to deliver a full banking service like rival Tesco.

Kirsty Ward, who heads up Asda Money, said: "Financial products are important, but they shouldn't cost the earth and you shouldn't need to be an expert to buy one."

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The unlimited cashback credit card gives customers cashback of one per cent on everything they spend in store, online and at the pump, making it tempting to the company's 18m weekly shoppers.

Also stepping up the competition in recent times is Marks & Spencer, which last month announced it is set to open 50 branches of its in-store bank over the next 24 months, with the first due to open in firm's flagship store in Marble Arch, London, this month.

The company's existing money business, known as M&S Money, was purchased by HSBC in late 2004 and is run an a joint venture; it currently has three million customers with deposits totalling £3.2bn. The bank's profits will be shared between HSBC and M&S equally.

NR