Tandem Bank has moved to acquire money-sharing app Loop.
Launched in early 2022, Loop is described as a social network app focused exclusively on helping friends and family to easily and safely lend and borrow money with each other.
Almost six million people are borrowing from friends and family each month, with an estimated £12.5 billion of money being shared informally every year.
Loop aims to help users avoid expensive bank overdraft charges which are estimated to make traditional banks over £2bn in profit each year.
Users can add any shared expense between one or more friends and the app will remind everyone when payments are due. They can also use the app to reach out to friends and family for help with short-term lending, instead of a bank. It also handles the payments themselves.
Loop has targeted young professionals and students, reaching around two million people through its digital activities such as social media campaigns on TikTok.
It will continue to operate as a standalone app and brand, with plans to embed Tandem products and features in the Loop app, offering users access to a wider range of savings and lending services.
“Tandem is on a mission to build the UK’s greener, digital bank – offering customers more sustainable ways to save, borrow and spend. The addition of Loop to our award-winning digital product range fits perfectly with our strategy,” said Tandem CEO Alex Mollart.
“Loop’s unique approach to money sharing offers users a real alternative to expensive overdrafts. Given the app’s early success among Gen-Z users, the acquisition of Loop gives us a fantastic opportunity to grow Tandem’s customer base among a generation of climate-conscious consumers.”
In early 2022, Tandem acquired consumer finance lender Oplo, while it has broken into profitability.