GE moves from store cards to take on banks

The global finance company that lends £1 in every £4 on UK store cards is preparing to take on the high street banks and supermarkets in their core territory - current accounts and mortgages.

Ten million UK adults hold GE Capital-backed store cards from retailers including Asda, Debenhams and Harrods. The American-based company aims to woo them with 'value' financial services mostly sold on the internet.

'Once we have customers in through the credit and store cards we want them to use us for their other financial services,' said UK boss Brad Cooper. 'We have been providing finances to those customers via retailers and other intermediaries and now we will rebrand as GE Money and become a direct provider.'

Store cards have lost some appeal for providers as average balances are in decline and banks want to convert customers to other products. 'Half our customers have a loan with somebody else, 90 per cent have a credit card with somebody else and 40 per cent have a mortgage with somebody else,' said Cooper.

The rebranding - being discussed with a number of advertising agencies - will launch in September and phase one will be mortgages and loans. Current accounts will come later. 'We have grown our product capability through strategic acquisitions in the UK,' said Cooper.

GE is opening a call centre in Newcastle-upon-Tyne. The rebranding campaign will mostly be done through direct marketing and via the internet. There is no plan to open high street branches.