Marks & Spencer is set to terminate its current accounts later this year and shut its 29-in store bank branches with its 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.
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.
Paul Spencer, CEO of M&S Bank, said: ‘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.’
M&S Bank currently has some 150,000 current account customers and will instead focus on credit cards with plans to merge with its Sparks reward card.
The in-store travel money bureaux, which are located in over 100 stores, are unaffected
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: ‘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.’