Tandem has announced that it has agreed on a deal to acquire Harrods Bank, subject to regulatory approval. The deal will bring around £80 million of capital into the business.

Once the deal has been completed Tandem can accelerate launch plans and start to offer savings accounts as well as continued development of the app and credit card.

The deal will give Tandem a full banking licence.

The department store’s banking arm offers residential mortgages and buy-to-let loans between £1million and £5million.

On completion, the bank will operate under the Tandem brand.

Ricky Knox, Tandem founder, said: “Tandem has been built from the ground-up with the help of over 11,000 co-founders, who have helped us shape products and services that really make a difference to their lives. This acquisition will allow us to scale the business and ensure we can introduce as many people as possible to a new way of banking.”