Tesco declared its ambitions to become the “people’s bank” on Tuesday, capitalising on public disillusionment with traditional lenders to launch an aggressive expansion into financial services.

Playing to public anger over bankers’ bonuses in the wake of the government’s multi-billion pound bail-outs, Sir Terry Leahy, Tesco chief executive, said: “There will not be a better time to increase our commitment to financial services, customers are looking for a better deal.”