Asda to push financial products

Asda sign
Image caption Asda is owned by US company Wal-Mart and is the UK's second-largest supermarket group

Asda has become the latest retailer to launch new financial products as banks' reputations among the public continue to take a hit.

The supermarket has launched Asda Money to promote products such as currency exchange, insurance and a credit card.

It will sell these products in stores although they are provided by specialist companies.

The move comes shortly after Marks and Spencer said it would launch an in-store banking service this summer.

M&S Money will be backed by HSBC, but will include 50 branches in stores over the next two years.

Information about the Asda products will be supplied at checkouts and online.

Customers with its new credit card - which includes a cashback element - will have to manage it online, by telephone to a UK call centre, or by post.

The new Asda Money brand will also sell breakdown cover, as well as travel, home and car insurance.

Overall, Asda Money is still dwarfed by the operation of Tesco Bank, which is fully owned by the supermarket, has 6.5 million customers, and - unlike Asda - has its own banking licence.

A series of scandals have hit the reputation of the UK's High Street banks, prompting a number of other financial service providers to step up their offers.

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