Sainsbury's has announced plans for a phased withdrawal from its core banking business.

The retailer said that financial products that it continues to offer in the future will be delivered by financial services providers via a distributed model.

The supermarket chain already uses this format for its insurance products.

The company, which announced a strategy to focus on its retail business a number of years ago, said that there would be no immediate changes to products or services as a result of its decision.

Jim Brown will retire from his role as chief executive of Sainsbury's Bank, with Robert Mulhall taking over at the end of March.

Mulhall, who has previously worked as chief executive of Allied Irish Bank's (AIB) UK division, has been leading the global financial services consulting business of VISION Consulting since 2022.

"We have been clear since we launched our Food First strategy in 2020 that we would concentrate our efforts on our core retail businesses and today's announcement reflects that strategic focus," said Simon Roberts, chief executive, J Sainsbury. "It's business as usual for now at Sainsbury's Bank and there will be no immediate changes to products and services as a result of today's announcement."

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