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M&S launch in-store banking service

Marks and Spencer are set to launch an in-store banking service, backed by HSBC.

The first branch, backed by HSBC, is set to open in July at the flagship store at Marble Arch, London.

The retailer plans to open 50 branches in stores over the next 2 years, in a move which will create 500 jobs by the end of 2013.

From autumn 2012 M&S will offer a current account, while mortgages will be made available at a later date.

Branches are also set to follow store opening hours.

Marks and Spencer began offering financial products in 1985, and M&S Money now has three million customers. HSBC purchased the operation in November 2004, and it is now run by the bank and M&S as a joint venture, sharing profits equally.

The financial services arm of M&S already has its own authorisation from the Financial Services Authority, which means that ustomers can have up to £85,000 in both HSBC and M&S Money accounts covered by the Financial Services Compensation Scheme (FSCS).

The new branches will have private meeting rooms and seats rather than counters, while online and telephone banking will continue.

Colin Kersley, chief executive of the new M&S Bank said: “This is an evolution into current accounts and banking. ’

Customers will be able to register for M&S current accounts from July, which will then become operational in the Autumn. it is unclear whether or not the current account will be free or whether it will carry a monthly charge.

This was posted in Bdaily's Members' News section by Ruth Mitchell .