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Tesco is opening a call centre in Glasgow that will create over 800 jobs

Posted on Aug 20 2009
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Tesco is cranking up its expansion into personal finance and now believes it will be in a position to offer mortgages by the end of next year.

The supermarket giant, which also hopes to branch into current accounts by the end of 2010, opening a call centre in Glasgow that will create over 800 jobs.
Andrew Higginson, chief executive of Tesco Retailing Services, said there was now a real opportunity to create 'a strong competitor in the market place' with many of the traditionally strong big banks retrenching.
Chancellor Alistair Darling - who has become frustrated at the lack of lending to consumers and businesses from the major players such as Lloyds Banking Group and Royal Bank of Scotland - has thrown his backing behind Tesco. He visited the group's Edinburgh base yesterday to praise the creation of new jobs.
Darling said: 'We need more competition in the banking sector. People need choice.'
Higginson said: 'It is hard to ignore that people's trust in the banking sector is at a very low ebb.'
He pledges to brings 'transparency, openness and simplicity' to banking,.
Tesco made profits of more than £3billion last year but just £244million, less than 8 per cent of that, came from financial services. In recent years, there have been growing calls to curb the retailer's dominance.
However, it seems to have found a powerful ally in Alistair Darling who is clearly happy for the group to expand into other areas.
Analysts forecast Tesco could make more than £500million from financial services once it makes strides into current accounts and home loans. It already has 6m customer accounts.
Meanwhile, Higginson remains cautious on the outlook for the economy and warned that the 'need to raise taxes will have a depressing effect' on the nation's finances.


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