Tide, which is an SME-only digital challenger bank, says it will co-invest at least £60 million in the UK over the next five years.
Working with its partner ClearBank, Tide aims to substantially increase its share of the UK business banking market.
Tide says its aim is to become the number one challenger in the industry.
To achieve its goal of creating a genuine competitor to the high street banks that dominate the UK business banking sector, Tide is set to raise an additional £60 million.
This funding will match the £60 million grant awarded to ClearBank by Banking Competition Remedies Ltd as part of the RBS Alternative Remedies Package.
The total £120 million investment will allow Tide to target a market share of at least 8% by 2023.
Oliver Prill, CEO of Tide, said: “This new investment plan will help Tide accelerate its strategy to capture a significant share of the SME banking market. It will allow us to reach our goal of becoming the leading business banking challenger in the UK.
“We want to create a genuine scale challenger to the oligopoly that has dominated and failed SMEs for too long. SMEs should have the option of a dedicated and focused banking partner that will help them grow their business. With a clear plan for growth in the UK backed by significant investment, and our platform established and proven, we are ready for an exciting future.”
Tide offers its growing army of members business banking without monthly, weekly or annual, or card usage fees. The only costs are for transfers from non-Tide accounts, ATM use and cash deposits at the post office. Unlike traditional banks, a new Tide account can be up and running in just five minutes rather than what can be weeks on the high street. As well as balances and payments, Tide can be fully integrated into accounting systems. Tide was among the first to launch with Xero’s new bank feed integration.