Tesco is to rename Tesco Personal Finance as Tesco Bank.
The supermarket giant says the move reflects its longer-term objective of creating a full-service retail bank for Tesco customers, offering a range of banking and insurance services through branches, in stores and online.
Kevin Mountford, head of banking at moneysupermarket.com, welcomed the news, which had long been rumoured.
He added: “In the main the UK banking market has offered a healthy competitive environment however the last year has seen some major consolidation