Sainsbury's Bank Sells Travel Money Unit to Fexco Group
Sainsbury's Bank has agreed to sell its travel money operations to Fexco Group, marking another step in the UK supermarket chain's withdrawal from core banking services.
The transaction will transfer control of 220 travel money bureaux located within Sainsbury's stores to the Irish financial services company.
The deal establishes a revenue-sharing partnership that allows Sainsbury's to maintain brand presence in the foreign exchange market while reducing operational complexity.
Fexco Group will operate the travel money services under the Sainsbury's brand, with the retailer receiving ongoing revenue shares and rental income from store locations.
Sainsbury's travel money business currently holds approximately 10 per cent of the UK foreign exchange market through its network of in-store bureaux and online platform.
The operation serves millions of customers across the retailer's estate of over 600 supermarkets and 800 convenience stores.
Strategic retreat from banking accelerates
The sale continues Sainsbury's withdrawal from its banking division, which began in January 2024 when the company announced a phased retreat from core financial services.
Previous disposals include the transfer of personal loan, credit card and retail deposit portfolios to NatWest Group, the sale of ATM operations to NoteMachine and the disposal of Argos Financial Services card portfolios to NewDay Group.
Bláthnaid Bergin, Sainsbury's Chief Financial Officer, says the transaction enables the company to maintain customer access to foreign exchange services without operational burden.
“Travel money is a service our customers value and we're pleased to be entering a new long-term partnership with Fexco Group that ensures they can continue to access foreign exchange both in-store and online with the same ease and confidence,” Bláthnaid says.
The CFO confirms that customers will experience no immediate changes to service provision or access points.
The network of bureaux will continue operating within existing Sainsbury's locations, maintaining the physical infrastructure that supports the business's market position.
Fexco Group expands UK presence
For Fexco Group, the acquisition represents a substantial expansion of its UK operations and customer base.
The Dublin-based company, founded in 1981, operates foreign exchange services across 50 countries with 2,800 employees worldwide. Its existing travel money division manages over 500 locations across Ireland, the UK, Australia, New Zealand and Pacific Island territories.
Neil Hosty, CEO of Fexco Group, says the acquisition aligns with the company's growth strategy in retail foreign exchange.
“We are thrilled to welcome Sainsbury's Travel Money, its talented team, and their millions of loyal customers to Fexco Group,” Neil says.
“The reputation and reach of the Sainsbury's Travel Money business, with over 220 locations, make it a perfect fit with our commitment to delivering market-leading travel money services.”
The transaction provides Fexco Group with immediate access to Sainsbury's customer base and established distribution network.
The company's existing operations maintain an average Google review rating of 4.9 stars across more than 50,000 reviews, with many locations achieving perfect 5.0 ratings.
Partnership model replaces direct provision
The Sainsbury's-Fexco partnership exemplifies the retailer's shift towards a distributed financial services model.
Rather than operating banking products directly, Sainsbury's is establishing relationships with specialist providers who deliver services under the supermarket's brand while sharing revenue with the retailer.
“We started the phased withdrawal from our core banking business in January last year and are successfully on track towards a distributed model"
This approach allows Sainsbury's to maintain financial services income streams whilst focusing resources on its core retail operations.
The company operates Argos, Habitat, Tu clothing, Nectar loyalty programme and the remaining elements of Sainsbury's Bank alongside its supermarket and convenience store network.
Bláthnaid emphasises that the partnership structure enables continued customer access to travel money services without requiring direct operational involvement from Sainsbury's.
“We started the phased withdrawal from our core banking business in January last year and are successfully on track towards a distributed model where the financial services products that we continue to offer will be provided by dedicated financial services providers," Bláthnaid concludes.
