Supermarket bank sells off more major services in big update for 1,000s of customers – check how you're affected

Scottish Sun

4 days ago

Find out how the changes could affect you
ALL CHANGE Supermarket bank sells off more major services in big update for 1,000s of customers – check how you're affected
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A SUPERMARKET bank has sold off more of its major services as part of a shake-up that will affect thousands of customers.
Sainsbury's Bank has sold off both its travel money and car and home insurance businesses as it plans to focus on its food offering.
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Sainsbury's will still have travel kiosks inside stores but they'll be under a different brand
Credit: Getty
This is separate to the sale of the supermarket's core banking business, including loans, mortgages, and savings, to NatWest last year.
The move has seen 1.8million customers begin to be moved over to the high street giant, with mortgage holders transferring first.
Sainsbury's has now sold its car and home insurance arm to Allianz, one of the largest general insurers in the UK.
Customers who currently have insurance through Sainsbury's will be contacted later this year when their renewal is up.
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Those who are auto-renewing their policies will start moving to Allianz from November 2025.
Meanwhile the travel money business will be sold to financial services and foreign exchange company Fexco Group.
Customers will continue to be able to access services at over 220 travel money bureaux in Sainsbury's stores and online – an estate which currently represents almost 10 per cent of the UK market.
Sainsbury's currently has over 220 travel money kiosks across the country.
It comes after the supermarket revealed in January last year that it is set to close its banking business.
Sainsbury's Bank will be wound down as the supermarket says it wants to focus on "food first".
It said there would be a "phased withdrawal" of the banking business.
The Sun understands the Sainsbury's Bank brand may start to disappear from the end of the year, but nothing is confirmed yet.
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Sainsbury's already outsources its insurance products, and its Argos credit cards and loans to about 2.1million customers.
We revealed earlier this month that NatWest is taking on Sainsbury's Bank customers and will complete the transfer by December this year.
The High Court granted approval in April to pave way for the switch.
Legal ownership of credit cards, loans, and savings accounts officially moved to NatWest on May 1.
But the transfer of these accounts to NatWest's systems will begin from October and be completed by December.
Credit card holders will start receiving details about changes to their accounts this month.
Between August and September, customers with loans or savings accounts will get updates about their accounts.
From September to October, NatWest will provide instructions on next steps, including how to sign up for its digital banking, while Sainsbury's Bank will send a farewell message.
Bláthnaid Bergin, Sainsbury's chief financial officer, 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."
She said there will be no immediate changes for customers as a result of the move.
Bergin continued: "We started the phased withdrawal from our core Banking business in January last year and are successfully on track towards a distributed model where the financial services products that we continue to offer will be provided by dedicated financial services providers.
"Today's news means we will focus all more of our time and resources going forward on growing our core retail business."