Tesco 2012 Annual Report Download - page 25

Insurance:
Our products help support customers in
their daily lives, giving them peace of mind
wherever they are. Simple to understand,
our range of products continues to prove
popular with customers. Around 1.5 million
people now insure their cars and homes
with Tesco Bank. Since 2008, our car
insurance gross written premiums have
increased by 39% and pet insurance gross
written premiums are up by 44%.
Transaction services:
Our transaction services – ATMs
and travel bureaux – offer customers
convenience while they are on the go.
Both saw strong growth in the year,
with ATM transactions up 9% and
travel money transactions up 12%.
We ended the year with 3,265 ATMs,
up from 2,600 three years ago, and
we have close to 200 travel bureaux
across our store network.
Credit cards:
We are increasing our share of the market,
with 57% growth in credit card transactions
since 2008. Three years ago, Tesco Bank
credit cards made up 9% of all MasterCard
and Visa credit card transactions in the
UK – that figure is now 12%. Customers
benefit from the added ‘Tesco’ extras
that come with their credit card, such as
collecting one Clubcard point for every
£4 spent.
Rates are subject to change and are correct as at April 2012. Fixed rate saver: one-off payment and money cannot be withdrawn until the end of the term.
New products:
Tesco Bank has been growing well
even without new product launches,
but the products we’ve launched
on our own systems have enjoyed
huge success. Our Fixed Rate Saver,
launched in October 2010, has grown
to £1.5 billion and our retail bonds have
attracted investments of £185 million.
These initiatives diversify our funding
base and increase the long-term
funding available to the Bank.
We always want to give our customers
the best products and the best
experience, so we believe getting
it right at launch is more important
than rushing the process. Once we
have completed the final stage of
migration, we can push on faster
with more substantial new products,
starting with mortgages.
Current accounts are planned
to follow and we welcome the
recommendation of the Independent
Commission on Banking to make
it easier for customers to switch
between banks.
N
e
w
p
r
o
d
u
c
t
s
C
r
e
d
i
t
c
a
r
d
s
S
y
s
t
e
m
s
C
l
u
b
c
a
r
d
P
e
o
p
l
e
I
T
a
n
d
l
o
a
n
s
s
e
r
v
i
c
e
s
S
a
v
i
n
g
s
T
r
a
n
s
a
c
t
i
o
n
I
n
s
u
r
a
n
c
e
Tesco PLC Annual Report and Financial Statements 2012 21
STRATEGIC REVIEW PERFORMANCE REVIEW GOVERNANCE FINANCIAL STATEMENTSOVERVIEW
Chief Executive’s review Strategy in action Business model