UK | Sainsbury’s Bank plc (“Sainsbury’s Bank”) has announced the sale of its travel money business to Fexco Group, a financial services and foreign exchange company.
This has marked another milestone in the ongoing transformation of Sainsbury’s Bank after Sainsbury’s announced a phased withdrawal from its core banking business last year.
The travel money sale to Fexco Group marked the beginning of a new long-term strategic partnership, with foreign exchange services delivered by Fexco Group under the Sainsbury’s brand and Sainsbury’s receiving an ongoing share of revenue and rental income.
Customers will continue to be able to access services at over 220 travel money bureaux in Sainsbury’s stores and online, an estate which currently represents almost 10 percent of the UK market.
This deal followed the announcements during the last financial year of the sale of Sainsbury’s Bank’s personal loan, credit card and retail deposit portfolios to NatWest Group and ATM business to NoteMachine and of the Argos Financial Services cards portfolio to NewDay Group.
This agreement is consistent with Sainsbury’s focus on its core retail business. It will allow the retailer to continue to benefit from long-term financial services income streams that have a stronger connection to its retail offer.
“Travel money is a service our customers value, and we’re pleased to be entering a new long-term partnership with Fexco Group that ensures they can continue to access foreign exchange both in-store and online with the same ease and confidence,” said Bláthnaid Bergin, Sainsbury’s Chief Financial Officer.
“With over 220 bureaux nationwide and almost 10 percent of the UK market, this is a well-established part of our offer, and we’re pleased it will continue under the Sainsbury’s brand. With specialist expertise and a strong track record in foreign exchange, Fexco Group is a strong fit for our business. I’m also pleased to confirm that there will be no immediate changes, and customers can expect the same high level of service they know and trust.”
Bergin said that phased withdrawal was started from the core Banking business in January last year and is successfully on track towards a distributed model where dedicated financial services providers will provide the financial services products that Sainsbury’s has continued to offer.
“This news means we will focus all the more of our time and resources going forward on growing our core retail business.”
Neil Hosty, CEO of Fexco Group, was thrilled to welcome Sainsbury’s Travel Money, its talented team, and their millions of loyal customers to Fexco Group. The reputation and reach of the Sainsbury’s Travel Money business, with over 220 locations, make it a perfect fit with Fexco Group’s commitment to delivering market-leading travel money services.
“Since 1981, Fexco Group has built a legacy of outstanding customer service, delivered through strong partnerships and product innovation. We are excited to extend that same level of excellence and continuity to the exceptional Sainsbury's group as we bring the Sainsbury's Travel Money business into the Fexco Group family."
