Marks & Spencer to start offering mortgages in branches

Friday 8th June 2012
Written by Rosalind Renshaw

Marks & Spencer is about to shake up the financial services industry by opening banking facilities in its branches, which will offer first bank accounts and then mortgages.

The first will open next month in the Marks & Spencer branch at Marble Arch, London. A further 20 bank branches are planned. All will be open at weekends and operate the same hours as the shops.

The company already has a financial services brand, M & S Money, a joint venture with HSBC, which made a £50m profit last year.

It currently offers savings accounts, general insurance, personal loans, foreign exchange, and credit cards.

Tesco’s much-delayed launch into the mortgage market is still expected this year, after being hit by technology problems.

Marc Bolland, chief executive at Marks & Spencer, said: "M&S is one of the most trusted brands on the UK high street and we've achieved this by continually listening and responding to the needs of our 21 million customers. This bank will be built on M&S values; putting the customer at the heart of the proposition and delivering the exceptional service that sets us apart from the competition."

Chief executive of the new M & S Bank will be Colin Kersley, and the venture will create around 500 jobs. Kersley said: "We know loyal M&S customers will be genuinely excited by the prospect of banking with their favourite retailer. With over 25 years financial services experience, M&S Bank is the natural next step for M&S Money and will provide customers with a credible, alternative choice in the banking sector."

(9) Comments

Added by Next on 2012-06-12 17:22:44

Next there will be talk of Tesco being Estate Agents
Added by Banker on 2012-06-09 13:31:08

M&S Bank: Northern Rock collapse was the inspiration
Added by wolly worth on 2012-06-09 07:48:25

if HSBC are processing them, there is no chance! M ans S should get into bed with a lender who wants to lend!
Added by Paul Stuart on 2012-06-09 01:54:11

Oops! Sorry about the last post, an accidental cut and paste.

An important thing to note is that HSBC run and own (and yes I do mean own) M&Ss financial services.
Added by Paul Stuart on 2012-06-09 01:51:51
Added by Big Ted on 2012-06-08 19:52:02

First mortgages, next estate agency ? from a trusted, recognised brand ?
Added by Fun Boy Agent on 2012-06-08 10:19:55

M&S Mortgages to be displayed above the pie stand as these mortgages for the 'upper crust' only
Added by Hawkeye on 2012-06-08 09:43:46

This looks good to me - a well known household name offering mortgages! Perhaps this will shake up the current holders of purse strings as they seem to have deep pockets and very short arms.

When the toxic mortgages came into being suddenly the house values went up. I hope this move stabilises our business and gets things moving (sic).

@AC You do make me smile and I like your comments from time to time, don't agree every time but I think that's a good one today.
Added by Anonymous Coward on 2012-06-08 09:29:29

This isn't a repossession...

This is an M&S repossession!

Happy Days.

But then again it is just a logical extension of M&S Money and their credit cards.

It is also a good way of tapping into a revenue stream with very minimal costs.

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