Paul Pester Steps Down from Tandem Bank After Three-Year Chair Tenure

Paul Pester has stepped down as chair of Tandem Bank after three years, Companies House filings confirm. The filing, dated 10 March 2026, marks the end of a tenure that saw the UK challenger bank deliver three consecutive years of profit and cement its position as Britain’s leading green digital lender.

The Paul Pester Tandem Bank exit coincides with the appointment of Stephen Jones as new chair. Jones, currently Executive Chair of Investment Banking at Panmure Liberum, brings decades of senior leadership experience from Santander, Barclays, and UK Finance.

Who is Paul Pester?

Paul David Pester is best known as the former chief executive of TSB Bank from 2013 to 2018. His tenure there ended following IT failures during a botched migration to a new banking platform. An investigation by the Financial Conduct Authority, Prudential Regulation Authority, and law firm Slaughter & May found Pester had not committed any wrongdoing.

Before TSB, Pester was the first Group Chief Executive Officer of Virgin Money, where he launched one of the UK’s first digital consumer financial services businesses. He holds a first class honours degree in physics from the University of Manchester and a doctorate in mathematical physics from Oxford.

Paul Pester joined Tandem Bank as chairman in 2022, three years after his departure from TSB. During his tenure he oversaw the acquisition of Loop, a money-sharing app he co-founded in 2021, by Tandem in April 2023. He also presided over the integration of Oplo, the consumer lender Tandem acquired in a transformational deal that shifted the bank’s strategic focus toward green lending.

According to Companies House records, Pester retains directorships at Cardeo Ltd, a fintech focused on the credit card market, and several other companies. He also serves as a non-executive director at the National Bank of Bahrain and chairs FinTech accelerator Archie.

Who Replaces Paul Pester at Tandem Bank?

Stephen Jones has been appointed as Pester’s replacement. Jones is currently Executive Chair of Investment Banking at Panmure Liberum. His CV includes senior executive roles at Santander and Barclays, plus a stint as the inaugural Chief Executive of UK Finance.

The board changes don’t stop there. Clive Kornitzer joins as an independent non-executive director, replacing Matthew Donaldson who steps down after nearly four years. Kornitzer brings over 30 years’ commercial experience, including more than 20 years at board level. He held senior roles at Santander and One Savings Bank, most recently as Group Chief Operating Officer at OSB Group.

These changes follow a broader leadership refresh. Neil Chandler joined as CEO in June 2025, replacing retiring CEO Alex Mollart. Ryan Heaps was promoted to Chief Financial Officer in November 2025. Russell Strevens joined as Chief Technology Officer in December 2025.

Five new senior appointments in nine months. That’s either meticulous succession planning or something more urgent.

Tandem Bank’s Financial Performance

The Paul Pester Tandem Bank departure comes as the challenger posts its third consecutive year of profit. Underlying profit hit £24.1 million in 2024, up 40% on the previous year. Revenue climbed 9% to £98.7 million. Assets under management reached £1.5 billion, a 5.2% increase.

Green lending now accounts for 38% of Tandem’s total loan book. That portfolio grew 9% to £572 million. No other UK challenger bank comes close to that ratio.

The numbers reflect a strategic pivot following the 2021 acquisition of Oplo, a consumer lender. The combined business brought £1.2 billion of total assets, including £230 million in green lending at the time of acquisition, and a customer base that has since grown to over 171,000.

Tandem describes itself as the UK’s greener digital bank. The business model is straightforward: offer competitive savings rates to attract deposits, then deploy that capital as loans for electric vehicles, home energy efficiency upgrades, and solar panels. The bank is profitable. It’s growing. The board is being rebuilt anyway.

Why This Matters

According to Tandem Bank, Paul Pester leaves at what the company describes as a positive point for the business. Stephen Jones, the incoming chair, said: “Tandem has built a robust, profitable business with a clear purpose and an exciting future. I’d like to give a special thanks to both Paul and Matthew for their contributions to Tandem.”

That reads like standard corporate succession language. What’s less standard is the timing. Pester joined in 2022 to oversee the Oplo integration and shift toward green lending. Mission accomplished. The bank is profitable and growing. Three years is a short tenure for a chairman at a company this size, but it’s not unprecedented.

The question is what comes next. Jones has spent his career at much larger institutions. Santander, Barclays, UK Finance. Tandem has £1.5 billion in assets. Santander UK has over £300 billion. That’s a different scale entirely.

Challenger banks in the UK face persistent pressure. Monzo and Revolut have grabbed the digital banking headlines. Starling is profitable but conservative. Metro Bank needed a rescue. OakNorth focuses on business lending. Tandem carved out a niche with green finance. Whether that niche can support the next stage of growth is now Jones’s problem to solve.

What’s Next for Tandem Bank

The Paul Pester Tandem Bank story is one of managed succession, not crisis. The bank is profitable, well-capitalised, and growing. The new chair has the pedigree. The new CEO took over nine months ago. The executive team has been refreshed top to bottom.

Tandem’s next accounts are due later in 2026. Those numbers will show whether the 40% profit growth was a one-off or the start of a trend. The green lending portfolio is the differentiator. If it keeps growing at 9% while competitors struggle to find their footing, Tandem will have justified the entire leadership overhaul.

Paul Pester’s tenure at Tandem Bank lasted three years. He arrived to rebuild after TSB. He leaves with the bank profitable and focused. What the new team does with that platform is the story still to be written.