Marks & Spencer axes its 29 in-store bank branches and shuts current accounts

Marks & Spencer axes its 29 in-store bank branches and shuts current accounts in move that will affect 3million customers

  • Customers of M&S Bank will have to either move current accounts or close them
  • The move was prompted by ‘customers changing habits’ over the last year
  • No action has to be taken straight away and customers will be contacted soon 

Marks & Spencer is set to terminate its current accounts later this year and shut its 29-in store bank branches with its three million banking customers told to either switch to another lender or close their accounts altogether.

The chain is set to make the change due to many customers switching to online banking over the last year and changing the way they make payments.

Customers of M&S Bank have been assured no action needs to be made immediately and they will be contacted in the coming weeks about their options.

M&S Bank will close its current accounts by the summer, as well as its 29 banking concessions across the UK

It is unknown how the move will affect staff members at its 29 in-store branches come the summer

It is unknown how the move will affect staff members at its 29 in-store branches come the summer 

But they have warned any accounts still open from August will be frozen and customers will be unable to access their funds.

As part of the move its 29 banking concessions will also close by the summer.

It is currently unknown how many jobs will be affected.

Paul Spencer, CEO of M&S Bank, said in the Mirror: ‘As we adapt to meet the changing needs of our customers, and we deliver some new – more digitally-focused products and services – it does regrettably mean we will move away from branch-based servicing and the 29-in-store bank branches and associated current account will close this summer.

‘We’re now firmly focused on supporting both our customers and colleagues through this change, and the delivery of our transformation plans, which will create new and rewarding payment solutions for M&S shoppers, both in-store and online.’

Marks & Spencer says the move has been prompted by customers changing their shopping habits over the last year

Marks & Spencer says the move has been prompted by customers changing their shopping habits over the last year 

Customers will be contacted in the coming weeks to go through their options with their accounts

Customers will be contacted in the coming weeks to go through their options with their accounts

M&S Bank will instead focus on credit cards with plans to merge with its Sparks reward card.

At its launch in 2014 Marks & Spencer promised to offer a mass market ‘no fees’ current account backed by a £100 gift card sweetener in bid to break up the big bank monopoly.

Customers also earned loyalty points on debit card spends worth one point for every £1 spent.

Its new digital offering will continue to offer its savings and loan products and general insurance.

Kirsty Ward, director of bank and services at M&S added in the Mirror: ‘We are striving to bring our customers the very best financial products that meet their needs today and in the future – and our priority, as set out today, is making it even easier and more rewarding to buy the things they love from us.’