Sainsbury’s Bank is set to sell its travel money business to financial services and foreign exchange company Fexco Group.
The move marks another milestone in the firm’s ongoing transformation of Sainsbury’s Bank after the supermarket announced a phased withdrawal from its core banking business last year.
The sale represents the beginning of a new long-term strategic partnership, with foreign exchange services delivered by Fexco Group under the Sainsbury’s brand and the grocer receiving an ongoing share of sales and rental income.
Shoppers will continue to be able to access services at over 220 travel money bureaux in Sainsbury’s stores and online.
The deal follows 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, its ATM arm to NoteMachine, and of its Argos financial services cards portfolio to NewDay Group.
Sainsbury’s noted that the agreement was consistent with its focus on its core retail business and would allow it to continue benefiting from long-term financial services income streams that have a stronger connection to its retail offer.
Related Story
Sainsbury’s chief financial officer Bláthnaid Bergin said: “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.
“With over 220 bureaux nationwide and almost 10 per cent 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.”
Earlier this week, M&S launched Sparks preferential rates on travel money, offering loyalty members better deals when taking out new currency.
The retailer also introduced a click and collect service for over 50 currencies across more than 560 of its stores nationwide, alongside its 96 bureaux de change desks.
Click here to sign up to Retail Gazette‘s free daily email newsletter
