M&S Bank Branches Close

The 29 branches of M&S Bank close today (Friday 2^nd July), with the closure of all current accounts due by the end of August.

Any customers who have a current account with M&S Bank can now only manage their funds through telephone and internet banking until the accounts are permanently shut down in two months’ time.

The closures were announced in March this year, when the bank decided to move into credit cards, digital payments and currency exchange services only.

Major Step in Closures

The closure of the branches is reflective of a wider move across the UK banking industry, with many high street banks opting to close some of their branches as they claim customer footfall is lower.

However, many people are concerned about how they will access their money if they are unable to unwilling to use digital services. In particular the elderly or some vulnerable customers may be left struggling to handle their day-to-day banking needs.

M&S Bank, which was half-owned by the Marks and Spencer chain and by HSBC, is going a step further by closing all branches and shutting down current accounts completely.

They are no longer accepting applications for new current accounts, understandably, and have contacted customers advising them to switch before the 31^st August deadline.

Customers are able to use the normal switching service with their new bank, or they may log onto the M&S Bank website to close down their account online, although the balance will need to be zero for this to work.

If the customer has any money in their bank, they must transfer it elsewhere. If they do not, the account will be frozen and customers will need to contact M&S to try and transfer their funds after the deadline.

Equally, any customers who have an overdraft must make sure to pay it back or transfer it to another banking provider. If the customer remains in debt by 31^st August the debt will be frozen in place and M&S Bank will begin taking steps to reclaim the money owed to them.

Future of M&S Banking

While many banks have been closing due to the effects of the Coronavirus pandemic, it’s believed that the M&S Bank closures are more down to the fact that the bank just hasn’t made much money from its current account offering.

Instead, it wants to put more focus on its more successful financial products, including credit cards and personal loans. It also has travel money bureau branches in a hundred M&S stores, and is a strong player in that market.

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.

M&S bank chief executive Paul Spencer, in March 2021