Benny Higgins and Tesco Personal Finance

Benny Higgins is a prominent figure in the UK financial services industry, best known for his leadership roles at major institutions. While not directly associated with the initial establishment of Tesco Personal Finance (now Tesco Bank), his influence and eventual appointment significantly shaped the bank's strategy and direction during a crucial period of its growth.

Higgins' career trajectory involved senior positions at RBS and HBOS, experiences that equipped him with a deep understanding of retail banking and financial management. He gained a reputation for strategic thinking and operational efficiency, attributes highly valued in the competitive banking landscape.

Although Tesco had established its personal finance arm prior to Higgins' involvement, his arrival as CEO in 2008 marked a turning point. Tesco Personal Finance, launched in 1997 as a joint venture with RBS, primarily offered credit cards and personal loans. The ambition was to leverage Tesco's massive customer base and brand recognition to cross-sell financial products and services, adding significant value to the supermarket giant's core business.

Under Higgins' leadership, Tesco Personal Finance embarked on an ambitious plan to become a fully-fledged bank. This involved securing a banking license and expanding its product offering to include current accounts, mortgages, and savings products. Higgins spearheaded the negotiations to buy out RBS's 50% stake in the joint venture, a move that cemented Tesco's control and allowed for greater autonomy in shaping the bank's future.

The transition to a full-service bank was a complex undertaking, requiring significant investment in infrastructure, technology, and regulatory compliance. Higgins oversaw this process, ensuring that Tesco Bank met the stringent requirements of the Financial Services Authority (FSA), now the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA).

During his tenure, Tesco Bank experienced considerable growth in customer numbers and assets. Higgins emphasized a customer-centric approach, focusing on providing competitive products and excellent service. The bank leveraged the Tesco Clubcard loyalty program to incentivize customers and build deeper relationships. This integration of retail and banking was a key differentiator for Tesco Bank.

Higgins departed Tesco Bank in 2011, having successfully steered the company through its transformation into a fully licensed bank. He left behind a stronger, more diversified financial institution poised for further growth. His leadership was instrumental in solidifying Tesco's presence in the UK banking sector.

Following his time at Tesco Bank, Higgins continued to play a significant role in Scottish public life, notably as Strategic Advisor to the First Minister on the Scottish economy. His contribution to Tesco Bank, however, remains a notable chapter in his career, demonstrating his expertise in navigating the challenges and opportunities of the retail banking industry.