Photo of Ex-Barclays Boss Bob Diamond via HITC
Bob Diamond is the newest City veteran that is looking for a piece of the digital fintech revolution with Barclay’s former boss eyeing a possible investment in Tandem, an online challenger bank.
Sky News reported that Atlas Merchant Capital (AMC), the private equity firm of the banker, is considering an investment in the fintech startup, as it attempts to regain its banking licence and kickstart its launch plans amidst growing competition.
Earlier this year, Tandem snapped up Harrods Bank. The company lost its permission to be identified as a bank after Sanpower, the House of Fraser owner, pulled its funding, which resulted in the firm losing its banking licence.
The deal for the lending part of the luxury Knightsbridge retailer is anticipated to bring with it new permission – and capital – in order to operate as a bank.
Tandem has is yet to respond to a request for comment.
According to the Pulse of Fintech report of KPMG, the lure of fintech for private equity companies is growing, with around $4bn already invested into the sector across Europe during the first three quarters of the year, up from $3bn in all of last year.
Last month, Monzo, a rival digital challenger bank, raised £71m while Starling is attempting to close a funding round amounting to £40m by the end of next June with operations as a fully licensed bank demanding higher amounts of capital as compared to other fintech startups.