Musgrave examines possibility of providing financial services
Musgrave says it won't be offering personal or commercial loans and "all plans in the financial services area are in their infancy"
Print25 November 2013
Musgrave chief executive Chris Martin
Musgrave has confirmed the group is in the early stages of looking at providing services such as insurance products to customers. However these plans do not include personal or commercial loans.
Following a report in the Sunday Independent yesterday, Musgrave issued a statement, which said it "wishes to clarify that it has no plans to launch a bank".
According to the Sunday Independent report, the retailer "is considering launching its banking business in late summer 2014. The company has not yet decided whether it will be a joint venture with another financial services group or another bank in order to provide further products".
The newspaper article added: "It is thought that Musgrave will be able to tailor financial products to its customers through extensive use of its "Real rewards" loyalty card scheme, which contains valuable insights into customer spending patterns and habits." It also claimed the retailer is recruiting a number of key executives to "help shape the plans".
However, Musgrave’s official press statement said all plans involving financial services are "in their infancy".
A representative said: "Musgrave is exploring the financial services space after receiving customer feedback that this is one of a number of services they would like to see offered by our retail brands. We would reiterate that we have no plans to launch a bank. It is important to note that all plans in the financial services area are in their infancy; therefore nothing will be launched in the short to medium term."
Dermott Jewell, chief executive of the Consumer Association of Ireland, said Musgrave’s plans could be a boon for consumers if the retailer could provide a competitive offer.
"When you are looking at a relatively large organisation that engages with consumers on a regular basis, there is a positivity there," he said.
However the chief executive added: "A lot depends on the offer. They may not necessarily be competitive. What this market needs is a competitive player."
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