Marks & Spencer has recently announced plans to open 28 bank branches by the end of the year, as its first current accounts went live.
The large enterprise, which has so far opened 13 bank branches out of 16 locations which have already been confirmed, revealed a further list of 12 branches scheduled to open by the end of 2012.
They will open in Braehead, London Colney, Hertfordshire; Renfrewshire; Merry Hill, Oxford; Dudley; Milton Keynes; Cheshire, Cheshire Oaks, Camberley, Surrey; Norwich; London, White City, Exeter; Shoreham, West Sussex; Belfast and Lisburn.
For now, shoppers can apply for M&S premium current accounts, which carry costs of up to £240 a year in return for “transparent” terms and a range of in-store benefits.
The retailer opened its first bank branch in July, offering seven days a week banking facilities and a pager service meaning users can carry on with their shopping instead of queuing up.
The introduction of a new player in the market came as regular banks have been fighting to win back the belief from customers in the wake of events such as Barclays’ Libor-fixing scandal and NatWest’s IT turmoil.
The retailer has previously confirmed that it plans to open a total of 50 bank branches by the end of 2013, with opening hours reflecting those of the commercial properties in which they are based.
Customers have been able to sign up in advance for the new M&S current accounts since July.
A spokesperson for M&S Bank declined to give any information on the level of interest for the period of pre-registration, but said the accounts have been “well-received”.
For £20 a month, the premium current account with insurance promises clients more than £500-worth of yearly benefits such as travel insurance, M&S vouchers and loyalty points on debit card purchases. Customers will also have access to a savings account with a fixed rate of 6 per cent.
The M&S premium account minus the insurance costs £15 a month and comes with comparable banking and rewards and the potential to profit from more than £300-worth of benefits yearly.
M&S Bank is entirely owned by HSBC but runs on a 50/50 profit share with Marks & Spencer. Legally, the new bank is designed as a separate entity to HSBC, meaning it has its own registration with the Financial Services Compensation Scheme (FSCS), which reimburses people if their bank goes under.
The move has been welcomed as positive for mainstream customers, and experts have predicted M&S Bank is expected to target its products at “vanilla” customers, who already have strong credit histories.
They have said that as with any paid-for service, customers ought to consider how much they will benefit from the extras included in the current accounts.
Previous Post
More Cork Street Galleries Threatened by Developers
