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{{Infobox company
| name = Marks & Spencer Financial Services plc
| logo = M&Sbank.svg
| trade_name = M&S Bank
| former_name = M&S Money<br>St Michael Financial Services
| type = Public
| foundation = 1985
| founder = [[Marks & Spencer]]
| location = Kings Meadow,<br>[[Chester]]
| key_people = David Lister, Chairman and Non-executive director<br>Paul Spencer, Chief executive
| industry = [[Financial services|Finance and Insurance]]
| products = [[Financial services]]
| revenue =
| operating_income =
| net_income =
| num_employees =
| parent = [[HSBC (United_Kingdom)|HSBC UK]]
| subsid =
| homepage = {{URL|http://bank.marksandspencer.com}}
| footnotes =
| assets =
}}
'''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.
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 (United_Kingdom)|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]].<ref name="MS PR 1">{{cite web|title=M&S Bank announces next stage of its transformation plans and outlines future product offering and evolution of account servicing|url=https://corporate.marksandspencer.com/media/press-releases/5ff7017fc6fe1bc26cb21d12/m-and-s-bank-announces-next-stage-of-its-transformation-plans-and-outlines-future-product-offering-and-evolution-of-account-servicing
|publisher=[[Marks & Spencer]]|access-date=8 March 2021}}</ref>
The bank is authorised by the [[Prudential Regulation Authority (United Kingdom)|Prudential Regulation Authority]] and regulated by both the [[Financial Conduct Authority]] and the Prudential Regulation Authority. It subscribes to the [[Lending Code]].<ref>{{cite web|title=Registered Firms|url=https://www.lendingstandardsboard.org.uk/registered-firms/|publisher=Lending Standards Board|access-date=8 March 2021}}</ref>
==History==
The bank was launched by Marks & Spencer as St Michael Financial Services in 1985,<ref name="Chronicle 1">{{cite news|title=M&S Bank celebrates 30th anniversary|url=https://www.cheshire-live.co.uk/news/business/ms-bank-celebrates-30th-anniversary-9039947|access-date=8 March 2021|work=[[Chester Chronicle]]|date=15 April 2015}}</ref> 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.<ref name="MS Our History">{{cite web|title=Our history|url=https://bank.marksandspencer.com/about-us/history/|publisher=Marks & Spencer Financial Services plc|access-date=6 March 2021}}</ref>
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.<ref name="MS Report 2004">{{cite web|title=Annual report and financial statements 2004|url=https://corporate.marksandspencer.com/documents/reports-results-and-publications/annual-reports/annual-report-2004.pdf|publisher=Marks & Spencer|access-date=8 March 2021}}</ref>
During 2004, as part of an effort to reduce costs and return money to shareholders,<ref>{{cite news|title=M&S sets out fightback strategy|url=http://news.bbc.co.uk/1/hi/business/3885805.stm|access-date=19 January 2015|work=[[BBC News]]|date=12 July 2004}}</ref> 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<ref>{{cite news|last1=Cave|first1=Andrew|title=The Sunday Interview: Colin Kersley, chief of M&S Bank|url=https://www.telegraph.co.uk/finance/newsbysector/banksandfinance/9606635/The-Sunday-Interview-Colin-Kersley-chief-of-MandS-Bank.html|access-date=19 January 2015|work=[[The Daily Telegraph]]|date=13 October 2012}}</ref> with subsequent renewals committing to maintain the partnership until at least 2031.<ref name="MS PR 2">{{cite web|title=M&S and HSBC UK agree new M&S financial services partnership
|url=https://corporate.marksandspencer.com/media/press-releases/ms-and-hsbc-uk-agree-new-ms-financial-services-partnership
|publisher=[[Marks & Spencer]]|date=10 April 2024|access-date=30 April 2024}}</ref>
In 2019, the bank began its sponsorship of the [[Liverpool Arena|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.<ref name="guardian-close">{{cite news|last1=Jones|first1=Rupert|title=M&S Bank to shut all current accounts and in-store branches|url=https://www.theguardian.com/money/2021/mar/06/marks-and-spencer-bank-to-shut-all-current-accounts-and-in-store-branches|access-date=6 March 2021|work=[[The Guardian]]|date=6 March 2021}}</ref>
==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.<ref name="Guardian 2012">{{cite news|last1=Collinson|first1=Patrick|title=Marks & Spencer launches bank current account|url=https://www.theguardian.com/money/2012/jul/18/marks-spencer-bank-current-account|access-date=6 March 2021|work=The Guardian|date=18 July 2012}}</ref><ref name="guardian-close" />
'''Credit Cards'''
M&S Bank entered the credit card market in 2003<ref name="MS Our History" /> and offers various [[Mastercard]]-branded cards. Cards feature an 'M&S Points' loyalty scheme which rewards spending with Marks & Spencer vouchers and offers.<ref>{{cite web|title=M&S Credit Card|url=https://bank.marksandspencer.com/credit-card/|publisher=M&S Bank|access-date=8 March 2021}}</ref> 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.<ref>{{cite web|title=M&S Club Rewards|url=https://bank.marksandspencer.com/club-rewards/|publisher=M&S Bank|access-date=23 May 2021}}</ref>
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 &amp; Spencer's turnover.<ref name="MS PR 2" />
'''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.<ref>{{cite web|title=M&S Introduces Sparks Pay: A New Digital Way to Pay Exclusively for Its Sparks Customers|url=https://corporate.marksandspencer.com/media/press-releases/ms-introduces-sparks-pay-new-digital-way-pay-exclusively-its-sparks-customers|publisher=Marks & Spencer|date=6 October 2022|access-date=9 March 2023}}</ref>
'''Loans'''
Personal loans were introduced in 1989<ref name="MS Our History" /> and amounts of between £1,000 and £25,000 are available.<ref>{{cite web|title=M&S Personal Loans|url=https://bank.marksandspencer.com/personal-loans/|publisher=M&S Bank|access-date=29 March 2024}}</ref>
'''Insurance'''
The bank sells a selection of insurance products underwritten by various providers including:<ref>{{cite web|title=M&S Insurance|url=https://bank.marksandspencer.com/insurance/overview/|publisher=M&S Bank|access-date=6 March 2021}}</ref>
* Home insurance - [[Aviva]]
* Car insurance - [[BGL Group|BISL]]
* Travel insurance - [[Aviva]]
* Pet insurance - [[RSA Insurance Group|RSA]]
* Life insurance - [[HSBC|HSBC Life]]
'''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.<ref name="MSB TM">{{cite web|title=M&S Travel Money|url=https://bank.marksandspencer.com/travel/travel-money/|publisher=M&S Bank|access-date=6 March 2021}}</ref>
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.<ref name="MSB TM" />
==Former products==
'''Store cards'''
The bank's first products were the Budgetcard and Chargecard store cards.<ref name="Chronicle 1" /> These allowed customers to make 'buy now, pay later' purchases in Marks & Spencer stores, which did not accept mainstream credit cards until April 2000.<ref name="Guardian MS CC">{{cite news|last1=Finch|first1=Julia|title=M&S opens door to credit cards
|url=https://www.theguardian.com/money/2000/apr/17/business.personalfinancenews2|access-date=8 March 2021|work=The Guardian|date=17 April 2000}}</ref> Chargecard received 270,000 applications within three weeks of its launch in 1985<ref name="Chronicle 1" /> and by 1999 was claimed to be the country's biggest store card scheme with over 6 million cardholders.<ref>{{cite news|title=M&S becomes Internet retailer
|url=http://news.bbc.co.uk/1/hi/business/403461.stm|access-date=8 March 2021|work=BBC News|date=25 July 1999}}</ref>
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.<ref name="MS Report 2004" /> 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.<ref name="Storecard Closure">{{cite web|title=M&S Chargecard, M&S Budgetcard and M&S Personal Reserve accounts are closing on 22 July 2024|url=https://bank.marksandspencer.com/storecard/
|publisher=M&S Bank|access-date=13 May 2024}}</ref>
'''Current accounts'''
A paid-for Premium Current Account featuring benefits tailored to regular Marks & Spencer customers was launched during 2012,<ref name="Guardian 2012" /> followed in 2014 by a standard current account offering the typical free in-credit banking commonplace in the UK.<ref>{{cite news|last1=Elvin|first1=Joe|title=How does the M&S bank account measure up?|url=https://www.which.co.uk/news/2014/05/how-does-the-mands-bank-account-measure-up-367235/|access-date=6 March 2021|work=Which?|date=15 May 2014}}</ref>
On 4 March 2021, M&S Bank announced that it would discontinue its current account sales and close all current accounts by August 2021.<ref name="MS PR 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.<ref>{{cite news|title=Marks & Spencer axes all 29 in-store bank branches and tells customers it is shutting their current accounts|url=https://bmmagazine.co.uk/news/marks-spencer-axes-all-29-in-store-bank-branches-and-tells-customers-it-is-shutting-their-current-accounts/|access-date=6 March 2021|work=Business Matters|date=4 March 2021}}</ref>
'''Mortgages'''
A range of mortgages was introduced in 2018,<ref name="MS Our History" /> 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.<ref name="MS PR 1" />
==References==
{{reflist}}
==External links==
{{Portal|Banks}}
*{{official website|http://bank.marksandspencer.com}}
{{HSBC}}
{{Commercial and retail banks in the United Kingdom}}
{{Use British English|date=January 2014}}
{{Use dmy dates|date=June 2014}}
{{DEFAULTSORT:MandS Bank}}
[[Category:HSBC subsidiaries|MandS Money]]
[[Category:Marks & Spencer]]
[[Category:Banks of the United Kingdom]]
[[Category:British companies established in 1985]]
[[Category:Banks established in 1985]]