Comment: Tesco to check out the challenge ahead

TESCo Bank boss Benny Higgins has been a patient man, though it has probably proved to be a virtue in the light of the flak surrounding his peers.

Sceptics expected the banking project to come unstuck, but the supermarket giant persisted with it in the hope of carving out a niche in what was, at the time of its launch in 1997, a robust and impenetrable sector.

In its first nine years it remained a modest operation, tacked under the wing of Royal Bank of Scotland (RBS), and badging various products to sell to customers who were otherwise preoccupied with buying their groceries.

Since breaking away from RBS in 2008, the bank’s growth has accelerated and the range of products widened to around 30. There have been some delays along the way, some self-inflicted as the board awaited the right conditions to unleash the next offering.

Crucially, the launch next year of a current account will be its biggest step since last year’s move into mortgages.

The creation of hundreds of jobs in Scotland speaks almost for itself as an expression of Tesco’s commitment and also helps offset those that have been lost at other financial institutions.

By offering a full service retail banking service, Tesco Bank will legitimately claim to have moved from niche to mainstream, even if its share of the overall market remains tiny.