J. Sainsbury PLC, a grocery chain in the United Kingdom, plans to offer a credit card in a joint venture with Bank of Scotland.
Dow Jones News Service reported the card-issuing bank, Sainsbury's Bank, will be 55% owned by the retailer and 45% by Bank of Scotland. The venture is expected to get off the ground in 1997, pending approval by the Bank of England and other regulatory authorities.
In addition to marketing classic and gold Visa cards, the bank will have a range of deposit, lending, and cash management services directed for its 12 million customers, Sainsbury said in a press release.
Sainsbury will be the first supermarket retailer to enter the consumer banking business in Britain. Its archrival, Tesco, is offering financial products under a private-label agreement with National Westminster Bank.