U.K.-based Tandem received approval from the U.K. Prudential Regulation and Financial Conduct authorities for its acquisition of loss-making lender Harrods Bank Ltd.
Tandem, a digital-only would-be challenger bank, said the deal will give it access to a full banking license, some 10,000 bank clients and a significant capital injection. It will also acquire Harrods Bank's mortgage and savings portfolios.
Tandem earlier in 2017 was forced to postpone plans to obtain a banking license of its own after a promise of funding failed to materialize.
Harrods Bank reported a full-year pretax loss of £4.9 million in 2015, which grew to £8.4 million in 2016. Tandem CEO Ricky Knox expects the deal to be completed early in 2018.