The retail chain plans to invest up to $43m in app-based bank Tandem as part of an alliance that will involve Tandem's services being offered in its stores.

Department store chain House of Fraser intends to invest up to £35m ($43m) in UK-based digital bank Tandem, the Telegraph has reported.

Tandem runs a bank that has no brick-and-mortar branches and which instead conducts its business entirely through an app. It currently offers savings accounts to customers and plans to expand to current accounts and credit cards in 2017.

House of Fraser issues credit and loyalty cards but will form a partnership with Tandem that will involve the startup’s…