Tesco Banking to open Newcastle call centre

28th Oct 2009 09:30

Global retailer Tesco’s move into banking continues apace, with the company announcing its banking division will set up a customer services office in Newcastle.The office will create 1,000 new jobs in the north-east of England, a favoured location for customer service centres.‘The north-east of England has strong experience in customer services and the financial sector, with a well-qualified and enthusiastic workforce," said Benny Higgins, chief executive of Tesco Bank.The move will fan the flames of speculation about Tesco's designs on the government-owned lender Northern Rock, which has its headquarters in Gosforth, Newcastle upon Tyne.Press reports today suggest that the European Commission is expected to approve plans to break up and sell Northern Rock, and Tesco has repeatedly been mooted as a potential buyer.The logic behind the speculation is that acquiring the Northern Rock business will give Tesco Banking a presence on the High Street, though this logic tends to overlook the fact that Tesco, Britain’s biggest supermarket by some distance, already has a strong presence on the High Street.Fortis, the Netherlands based insurer and Tesco Banking’s insurance partner, announced that it will create 550 new jobs in the UK as a result of the expansion of Tesco’s banking activities, though these jobs will not be in the north-east; Fortis is planning to crease jobs in Gloucester, Stoke and Eastleigh over the next 12 months.Business secretary Lord Mandelson hailed the creation of new jobs by Tesco. ‘The range of government support available is ensuring that people and businesses get the help they need to create new jobs across the whole of the country," Mandelson said. Tesco expects to start hiring next year, and plans to have 500 employees on board by the end of 2010.