THE largest supermarket bank in the UK is set to create more than 800 jobs in Scotland with the opening of a new customer service centre. The Tesco group operation will be based in Glasgow and will manage customer sales and service for Tesco Personal Finance (TPF).

TPF will be based at Broadway One in the city centre and will manage customer sales and service. TPF has received a grant from the Scottish government for five million pounds to help in creating the service base. About 100,000 people are already employed in the Scottish financial services sector, 10 per cent of the total of the United Kingdom.

TPF is the UK's largest supermarket bank and since its launch in 1997 it has grown to have nearly six million customer accounts across 28 financial products and services.

Its principal activities are general insurance - motor, home, pet and travel; credit cards and personal loans; personal savings; Tesco Compare and a network of cash machines (ATMs). It sells products through multiple channels including in-store, by telephone and online.

A spokesperson said that customer focus is central to TPF's approach to personal finance and the service centre will enable TPF to offer the highest standards of customer service.

Andrew Higginson, chief executive of Tesco Retailing Services, said: "The opening of the new customer service centre will be a significant step towards TPF offering a full banking service. It is hard to ignore that people's trust in the banking sector is at a very low ebb.

"Offering first-class customer service is central to our Tesco values and the new centre will most certainly help us put the Tesco into Tesco Personal Finance. Additionally, the creation of over 800 jobs in the current climate cannot be underestimated. Today's announcement is great news for job seekers and for consumers," he added.

TPF chief executive Benny Higgins said: "We are delighted to announce the establishment of a key customer service centre in Glasgow and our focus will be on serving customers well. We have enjoyed a strong, supportive relationship with the Scottish government in reaching this decision."

The operations centre is expected to open in the first half of 2010 and will migrate its existing customers before the end of 2011 to ensure a seamless transition. Similar to the company's headquarters in Edinburgh, the TPF site is close to key transport links and built to high environmental standards.

The announcement was warmly welcomed by UK Chancellor of the Exchequer Alistair Darling who said: "This is a strong vote of confidence in Scotland's financial services industry from one of the UK's leading companies. And it shows that even at this difficult time, the Scottish and wider UK economy is still creating high quality jobs."

Earlier this year Scotland's First Minister Alex Salmond officially opened the TPF centre in Edinburgh where he was joined by Tesco chief executive Sir Terry Leahy.

The building has been hailed as one of Scotland's greenest office developments and achieved the highest environmental BREEAM ratings from the Building Research Establishment, universally recognised as the gold standard in commercial property construction.

Speaking at the opening, the First Minister said: "Tesco Personal Finance's decision to establish its headquarters in Edinburgh signifies the company's commitment to building its business in Scotland.The global economic downturn has seriously affected the Scottish financial sector - however, the establishment of this HQ and the company's plans to increase its workforce from 250 to 450 demonstrates the resilience of our financial services industry and reaffirms our reputation as a leading international centre.