Key figures for Tesco Bank 2019-2022

Founded in 1997, Tesco Bank is a retail bank headquartered in the United Kingdom (UK). Since 2019, Tesco Bank saw a notable increase in its cost to income ratio. Despite this, the group has remained relatively strong through these time with capital and liquidity ratios remaining above regulatory required levels.

Challenger banks

The term 'Challenger Bank' is used as a description of banks and financial services that were created after the Global Financial Crisis and have made significant impact in 'challenging' incumbent large banks or have had a significant impact on the market. KPMG describe four main areas in which challenger banks have appeared in the market in the United Kingdom. These include full-service retail banks such as CYBG/Virgin Money, Metro Bank, TSB Bank and the Co-op, Specialist lenders such as OneSavings Bank and Aldermore, retailer banks including Tesco's and Sainsbury's and Digital Banks. As the newest and perhaps the most exciting facet of challenger banks, Digital banks are mobile app-based banks that do not have a physical presence on the high street. Due to their simplicity and ease of use they have attracted significant attention from customers and investors alike.