The big four supermarkets – Tesco, Asda, Sainsbury’s and Morrisons - already take £20 of every £100 spent in shops, but they could soon take over personal finance, according to a survey by fool.co.uk.
One in five people already have a supermarket credit card, one in ten have a supermarket savings account, but only one in 200 people have a supermarket current account, but this could all be set to change, says fool.co.uk.
“Ten years ago supermarkets started with store cards and quickly expanded into credit cards, personal loans and savings accounts,” said David Kuo, Head of Personal Finance at Fool.co.uk.
And with many of the UK’s leading banks saying they may soon start charging customers on a pay per transaction basis, supermarkets could find themselves picking up many more customers.
“Today, supermarkets are as clever at marketing travel-insurance policies as they are at selling travel sweets,” continued Kuo. “Additionally, with their low running costs, supermarkets can easily undercut other providers. They are already pinching customers from banks and in time could steal even more.
“It is reckoned that over 40 million adults in the UK have a current account. This is a massive unpicked cherry for supermarkets to target. If three out of seven shoppers switch their loyalty from banks to supermarkets, as many as 17 million bank customers could jump ship.
“As supermarkets wheel their trolley of growth along the aisles of opportunity, they are unlikely to let anyone stand in their way. And, with millions of customers visiting the UK’s four biggest supermarkets every week, banks will need to continually look at the products on their shelves to avoid being beaten to the check out.”
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