M&S Bank

Last updated
Marks & Spencer Financial Services plc
M&S Bank
FormerlyM&S Money
St Michael Financial Services
Company typePublic
Industry Finance and Insurance
Founded1985
Founder Marks & Spencer
HeadquartersKings Meadow,
Chester
Key people
David Lister, Chairman and Non-executive director
Paul Spencer, Chief executive
Products Financial services
Parent HSBC UK
Website bank.marksandspencer.com

Marks & Spencer Financial Services plc, trading as M&S Bank, is a retail bank operating in the United Kingdom. The company was founded in 1985 as St Michael Financial Services as the financial services division of Marks & Spencer and adopted its current name in 2012.

Contents

Initially focused on providing credit through in-house store cards, the bank now provides a range of products to personal customers including credit cards, loans, savings, insurance and foreign currency exchange.

M&S Bank is operated as a joint-venture with HSBC UK and has been a wholly owned subsidiary of the latter since its sale in November 2004. The bank retains its own banking licence and board and continues to occupy its purpose-built headquarters in Chester. [1]

The bank is authorised by the Prudential Regulation Authority and regulated by both the Financial Conduct Authority and the Prudential Regulation Authority. It subscribes to the Lending Code. [2]

History

The bank was launched by Marks & Spencer as St Michael Financial Services in 1985, [3] using the company's then main house brand. It initially specialised in operating its 'Chargecard' store card, before moving on to launch other credit offerings over the following few years.

The company was renamed Marks & Spencer Financial Services in 1988, and Marks & Spencer Unit Trust Management was established to provide unit trust funds the same year. In 1989, personal loans were introduced, followed by interest-free loans for M&S furniture purchases in 1991. [4]

A rebranding as M&S Money took place in 2003 and the product range was expanded with the launch of the '&More' credit card. A combination of new customers and conversion of former Chargecard holders secured a base of 2.1 million cardholders by the end of March 2004, making the company a top ten credit card issuer within the UK. [5]

During 2004, as part of an effort to reduce costs and return money to shareholders, [6] Marks & Spencer reached an agreement to sell the company to HSBC for £580 million. Under the terms of the sale, it was agreed that M&S and HSBC would share profits from M&S Money until at least 2019 [7] with subsequent renewals committing to maintain the partnership until at least 2031. [8]

In 2019, the bank began its sponsorship of the M&S Bank Arena, a major events venue in nearby Liverpool.

M&S Bank was reported as having between 3 and 4 million customers in early 2021. [9]

Products and services

M&S Bank provides a range of financial services to personal customers. Many have features designed to appeal specifically to Marks & Spencer customers.

Products are sold and serviced primarily online and by telephone, with additional marketing activity carried out through Marks & Spencer's stores and website. The bank also operated a small number of in-store branches between 2012 and 2021. [10] [9]

Credit Cards

M&S Bank entered the credit card market in 2003 [4] and offers various Mastercard-branded cards. Cards feature an 'M&S Points' loyalty scheme which rewards spending with Marks & Spencer vouchers and offers. [11] An additional 'Club Rewards' option gives extra loyalty points and vouchers in return for a monthly membership fee, along with additional benefits when shopping at Marks & Spencer such as free delivery of online orders and in-store hot drinks. [12]

In spring 2024, it was disclosed that M&S Bank had two million credit card holders and that these customers' spending made up 16% of Marks & Spencer's turnover. [8]

Sparks Pay

Launched in the autumn of 2022, Sparks Pay is a dedicated credit product for Marks & Spencer customers. It offers instant credit of up to £500 to spend at M&S online or in-store, with up to 45 days interest free. [13]

Loans

Personal loans were introduced in 1989 [4] and amounts of between £1,000 and £25,000 are available. [14]

Insurance

The bank sells a selection of insurance products underwritten by various providers including: [15]

Bureaux de change

Around 100 bureaux de change and travel money hubs are available in Marks & Spencer stores across the UK, offering facilities to sell and buy up to 40 currencies. The bank also offers a click and collect money service allowing Euro and US Dollars to be ordered online and collected from most other Marks & Spencer stores. [16]

Purchases of currency made using an M&S Bank credit card are interest-free for up to 55 days and do not attract the cash advance fee usually levied by credit cards. [16]

Former products

Store cards

The bank's first products were the Budgetcard and Chargecard store cards. [3] These allowed customers to make 'buy now, pay later' purchases in Marks & Spencer stores, which did not accept mainstream credit cards until April 2000. [17] Chargecard received 270,000 applications within three weeks of its launch in 1985 [3] and by 1999 was claimed to be the country's biggest store card scheme with over 6 million cardholders. [18]

From October 2003 onwards, around 2.6 million customers were offered a new Mastercard credit card to replace their existing Chargecard, leading to 1.7 million customers migrating to the new product. [5] The Budgetcard was removed from sale for new customers in 2005 and the Chargecard in 2011, followed by a final withdrawal and closure of both products in 2024. [19]


Current accounts

A paid-for Premium Current Account featuring benefits tailored to regular Marks & Spencer customers was launched during 2012, [10] followed in 2014 by a standard current account offering the typical free in-credit banking commonplace in the UK. [20]

On 4 March 2021, M&S Bank announced that it would discontinue its current account sales and close all current accounts by August 2021. [1] Press reports suggested that only 150,000 of the bank's customers were current account holders and that the company intended to focus instead on core products such as credit cards and loans, along with new digital payment solutions. [21]

Mortgages

A range of mortgages was introduced in 2018, [4] but signup of new customers ceased in 2020 as part of the bank's response to the COVID-19 pandemic, and there are no plans to re-enter the market. [1]

Related Research Articles

<span class="mw-page-title-main">Marks & Spencer</span> Major British multinational department store company

Marks and Spencer plc is a major British multinational retailer based in London, England, that specialises in selling clothing, beauty products, home products and food products. It is listed on the London Stock Exchange (LSE) and is a constituent of the FTSE 100 Index.

<span class="mw-page-title-main">HSBC</span> British multinational bank group

HSBC Holdings plc is a British universal bank and financial services group headquartered in London, England, with historical and business links to East Asia and a multinational footprint. It is the largest Europe-based bank by total assets, ahead of BNP Paribas, with US$2.919 trillion as of December 2023. In 2021, HSBC had $10.8 trillion in assets under custody (AUC) and $4.9 trillion in assets under administration (AUA).

<span class="mw-page-title-main">Financial services</span> Economic service provided by the finance industry

Financial services are economic services tied to finance provided by financial institutions. Financial services encompass a broad range of service sector activities, especially as concerns financial management and consumer finance.

Discover is a credit card brand issued primarily in the United States. It was introduced by Sears in 1985. When launched, Discover did not charge an annual fee and offered a higher-than-normal credit limit. A subsequent innovation was "Cashback Bonus" on purchases.

<span class="mw-page-title-main">President's Choice Financial</span> Subsidiary of the Loblaw Companies

President's Choice Financial, commonly shortened to PC Financial, is the financial service brand of the Canadian supermarket chain Loblaw Companies.

<span class="mw-page-title-main">Capital One</span> Bank holding company headquartered in McLean, Virginia

Capital One Financial Corporation is an American bank holding company specializing in credit cards, auto loans, banking, and savings accounts, headquartered in Tysons, Virginia with operations primarily in the United States. It is the 12th largest bank in the United States by total assets as of 2022, the third largest issuer of Visa and Mastercard credit cards, and one of the largest car finance companies in the United States.

<span class="mw-page-title-main">Egg Banking</span> British internet bank

Egg was an internet bank headquartered in Derby, that is now a trading name of Yorkshire Building Society. Egg was born out of the banking arm in the United Kingdom of Prudential plc, which was established in 1996, and the Egg brand was launched in October 1998. The first online credit card was launched in September 1999.

Tesco Personal Finance plc, trading as Tesco Bank, is a British retail bank which was formed in July 1997. The bank was formed as part of a 50:50 joint venture between The Royal Bank of Scotland and Tesco, the largest supermarket in the United Kingdom, employing 2,800 people.

HSBC Bank Australia Limited is the Australian subsidiary of HSBC. The bank offers a wide range of financial services in Australia through a network of 36 branches and offices. These services include retail and commercial banking, financial planning, trade finance, treasury, and financial markets, payments and cash management, and securities custody.

<span class="mw-page-title-main">HSBC (United Kingdom)</span> European subsidiary of multinational bank

HSBC UK Bank plc is a British multinational banking and financial services organisation based in Birmingham, England. It is a wholly owned subsidiary of the global HSBC banking and financial group, which has been headquartered in London since 1993. The UK headquarters of HSBC is located at One Centenary Square in Birmingham.

HSBC Finance Corporation is a financial services company and a subsidiary of HSBC Holdings. It is the sixth-largest issuer of MasterCard and Visa credit cards in the United States. HSBC Finance Corporation was formed from the legal entity that had been known as Household International—shortly after Household International settled for US$486 million in charges pertaining to predatory lending, after burning through $389 million in legal fees and expenses—and is now expanding its consumer finance model via the HSBC Group to Brazil, India, Argentina and elsewhere.

Payment protection insurance (PPI), also known as credit insurance, credit protection insurance, or loan repayment insurance, is an insurance product that enables consumers to ensure repayment of credit if the borrower dies, becomes ill or disabled, loses a job, or faces other circumstances that may prevent them from earning income to service the debt. It is not to be confused with income protection insurance, which is not specific to a debt but covers any income. PPI was widely sold by banks and other credit providers as an add-on to the loan or overdraft product.

<span class="mw-page-title-main">Vanquis Banking Group</span> British sub-prime lender

Vanquis Banking Group, formerly Provident Financial plc, is a British bank headquartered in Bradford, England which specialises in credit cards, loans and consumer vehicle finance. It primarily services customers with a sub-prime credit history who have been declined for credit from mainstream lenders. It also offers fixed-rate and notice savings accounts under the trading name Vanquis Savings. It is listed on the London Stock Exchange.

Discover Financial Services is an American financial services company that owns and operates Discover Bank, an online bank that offers checking and savings accounts, personal loans, home equity loans, student loans and credit cards. It also owns and operates the Discover and Pulse networks, and owns Diners Club International. Discover Card is the third largest credit card brand in the United States, when measured by cards in force, with nearly 50 million cardholders. Discover is currently headquartered in the Chicago suburb of Riverwoods, Illinois.

<span class="mw-page-title-main">Credit card</span> Card for financial transactions from a line of credit

A credit card is a payment card, usually issued by a bank, allowing its users to purchase goods or services or withdraw cash on credit. Using the card thus accrues debt that has to be repaid later. Credit cards are one of the most widely used forms of payment across the world.

<span class="mw-page-title-main">Virgin Money Australia</span> Financial services company

Virgin Money Australia is an Australian financial services company owned by Bank of Queensland, and has 150,000 customers.

<span class="mw-page-title-main">Post Office Money</span>

Post Office Money is a financial services brand operated by Post Office Ltd which provides credit cards, current accounts, insurance products, mortgages and personal loans to customers in the United Kingdom through Post Office branches, the internet and telephone.

Revolut is a global neobank and financial technology company based in London, England. It offers banking services for retail customers and businesses. It was founded in 2015 by Nikolay Storonsky and Vlad Yatsenko. It offers products including banking services, currency exchange, debit and credit cards, virtual cards, Apple Pay, interest-bearing "vaults", personal loans and BNPL, stock trading, crypto, commodities, human resources and other services.

<span class="mw-page-title-main">Monzo</span> British neobank

Monzo Bank Limited, trading as Monzo, is a British online bank based in London, England. Monzo was one of the earliest of a number of new app-based challenger banks in the UK.

<span class="mw-page-title-main">Simplii Financial</span> Banks of Canada

Simplii Financial is a Canadian direct bank and the digital banking division of the Canadian Imperial Bank of Commerce (CIBC). It offers no-fee chequing and savings accounts, a VISA credit card, Guaranteed Investment Certificates (GICs), mortgages and mutual funds. These savings and investment products are also eligible for registration under a Tax-Free Savings Account (TFSA) or a Registered Retirement Savings Plan (RRSP).

References

  1. 1 2 3 "M&S Bank announces next stage of its transformation plans and outlines future product offering and evolution of account servicing". Marks & Spencer . Retrieved 8 March 2021.
  2. ↑ "Registered Firms". Lending Standards Board. Retrieved 8 March 2021.
  3. 1 2 3 "M&S Bank celebrates 30th anniversary". Chester Chronicle . 15 April 2015. Retrieved 8 March 2021.
  4. 1 2 3 4 "Our history". Marks & Spencer Financial Services plc. Retrieved 6 March 2021.
  5. 1 2 "Annual report and financial statements 2004" (PDF). Marks & Spencer. Retrieved 8 March 2021.
  6. ↑ "M&S sets out fightback strategy". BBC News . 12 July 2004. Retrieved 19 January 2015.
  7. ↑ Cave, Andrew (13 October 2012). "The Sunday Interview: Colin Kersley, chief of M&S Bank". The Daily Telegraph . Retrieved 19 January 2015.
  8. 1 2 "M&S and HSBC UK agree new M&S financial services partnership". Marks & Spencer. 10 April 2024. Retrieved 30 April 2024.
  9. 1 2 Jones, Rupert (6 March 2021). "M&S Bank to shut all current accounts and in-store branches". The Guardian . Retrieved 6 March 2021.
  10. 1 2 Collinson, Patrick (18 July 2012). "Marks & Spencer launches bank current account". The Guardian. Retrieved 6 March 2021.
  11. ↑ "M&S Credit Card". M&S Bank. Retrieved 8 March 2021.
  12. ↑ "M&S Club Rewards". M&S Bank. Retrieved 23 May 2021.
  13. ↑ "M&S Introduces Sparks Pay: A New Digital Way to Pay Exclusively for Its Sparks Customers". Marks & Spencer. 6 October 2022. Retrieved 9 March 2023.
  14. ↑ "M&S Personal Loans". M&S Bank. Retrieved 29 March 2024.
  15. ↑ "M&S Insurance". M&S Bank. Retrieved 6 March 2021.
  16. 1 2 "M&S Travel Money". M&S Bank. Retrieved 6 March 2021.
  17. ↑ Finch, Julia (17 April 2000). "M&S opens door to credit cards". The Guardian. Retrieved 8 March 2021.
  18. ↑ "M&S becomes Internet retailer". BBC News. 25 July 1999. Retrieved 8 March 2021.
  19. ↑ "M&S Chargecard, M&S Budgetcard and M&S Personal Reserve accounts are closing on 22 July 2024". M&S Bank. Retrieved 13 May 2024.
  20. ↑ Elvin, Joe (15 May 2014). "How does the M&S bank account measure up?". Which?. Retrieved 6 March 2021.
  21. ↑ "Marks & Spencer axes all 29 in-store bank branches and tells customers it is shutting their current accounts". Business Matters. 4 March 2021. Retrieved 6 March 2021.

This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.