10% of consumers would consider moving their main current account to Tesco or Sainsbury’s.

Tesco’s recent results highlight the strength and trust people have in the brand. Despite much criticism of their powerful position they are one of the few UK brands of world-class status willing to try and re-create their success abroad.

Their financial services business continues to perform well. Profits of Tesco Personal Finance (split 50/50 with Royal Bank of Scotland) last year were £128 million. Underlying growth was encouraging and with a new management team in place new ideas are developing as to how best to capture more financial services wallet share of their loyal customers.

One consideration is to launch their own current account designed to promote Tesco as a main financial services provider in contrast to their current positioning of being a secondary commodity-style financial services provider, with a growing emphasis on online product delivery.

The impact of such a move would be to create a new excitement into the largely uniform world of current account offerings, currently receiving much negative publicity as a result of perceived excessive unauthorised overdraft charges.

Research undertaken by GfK NOP* for JGFR in March found that 10% of consumers (some 4.7 million) would consider switching their main account to one of the two main supermarket financial services brands –Tesco or Sainsbury’s. Such a move would find greater favour among 23-49 year olds and among middle-income groups and among families.

Customers would switch from all the major high street brand names. As people become more detached from their existing provider and financially more uncertain, the attraction of community shopping and banking under one roof at their main supermarket to whom they are very loyal is likely to grow in appeal.

* Research carried out between March 7-16 among 2,007 adults aged 16+. The data is used in a JGFR report on Main Financial Service Providers 2008. For details contact info@jgfr.co.uk or ring 0208 944 7510.