Loop aims to break down the social taboos around sharing money and helps users avoid their overdraft and the associated charges
Loop will continue to operate as a standalone brand. It plans to embed UK-based digital bank Tandem’s products and features, to offer a wider range of savings and lending services.
Launched in 2022, Loop set out to “revolutionise” the UK’s informal money sharing market by helping friends and family share money.
Loop aims to break down the social taboos around sharing money and helps users avoid their overdraft and the associated charges.
Data from Tandem shows that almost six million people are borrowing from friends and family each month, with an estimated £12.5b being shared annually.
In addition, there are approximately £10b of overdrafts outstanding at any one time, with around 30% of outstanding balances below £50 and more than 40% are for less than a week.
Alex Mollart, Tandem’s chief executive, commented: “The addition of Loop to our award-winning digital product range fits perfectly with our strategy.
“Loop’s unique approach to money sharing offers users a real alternative to expensive overdrafts.
“Given the app’s early success among Gen-Z users, the acquisition of Loop gives us a fantastic opportunity to grow Tandem’s customer base among a generation of climate-conscious consumers.”
Tandem markets itself as a “greener” bank. Last year, it launched Tandem Marketplace, a hub that provides its customers with information and resources to make greener living choices, tackle climate change and save money on their energy bills.