British retailer Sainsbury’s has announced it will wind down its banking business with plans to offer financial services products in the future through a third party distributed model.
The company said by using dedicated financial services providers it is looking to replicate a model it successfully uses for its insurance products, resulting in a phased withdrawal from its core Banking business over time. Despite the move, there will be no immediate changes to the products or services it currently offers
As part of the restructuring, Jim Brown, Chief Executive Officer of Sainsbury’s Bank, has decided to retire and will be succeeded by former CEO of Allied Irish Bank’s (AIB), Robert Mulhall who will take up the role at the end of March after a handover period, Sainsbury’s said.
Until 2022 Mulhall was the CEO of Allied Irish Bank’s (AIB) UK division, having previously led AIB’s Irish retail banking division. Since 2022, he has led the global financial services consulting business of VISION Consulting, focused on business transformation.
In addition to the banking withdrawal the Group is making several other changes to its Operating Board with a significantly reduced number of Operating Board Directors.
Simon Roberts, Chief Executive of J Sainsbury plc said: “I look forward to sharing more on the next phase of our plan at our forthcoming Strategy Update, building on all we’ve done to put food back at the heart of Sainsbury’s.
“It’s business as usual for now at Sainsbury’s Bank and there will be no immediate changes to products and services as a result of today’s announcement. We will of course communicate directly to customers well in advance of any changes to their products and services.”
