In-store bank planned by Marks and Spencer to check dip in sales
British high street retailer Marks and Spencer has tied up with HSBC, Europe's biggest bank, to open an in-store bank with over 50 branches across the UK in the next two years to offer current accounts and mortgage facility to the customers.
"MS is one of the most trusted brands on the UK high street. This bank will be built on MS values; putting the customer at the heart of the proposition and delivering the exceptional service that sets us apart from the competition," Chief Executive Marc Bolland said in a statement on Friday.
Over three million customers already use MS Money products, which are provided by HSBC, including credit cards, loans and savings.
From July customers will be able to pre-register their interest in a MS current account, which will be made available in autumn. Mortgages will be offered at a later date, MS added.
The first bank will open in July at MS's Marble Arch store in London. With bank operating hours to be aligned with store timings, customers will be able to bank while they shop, seven days a week, MS explained.
The customers will also benefit from 24 hour access to online banking.
Joe Garner, head of HSBC in the UK, said the new venture would give the bank an opportunity to attract high quality new depositors from MS' relatively affluent and older customer base.
He added that the move is the banks' most 'significant innovation in retail banking since the launch of First Direct 22 year ago'.
MS already offers limited financial services through MS Money, having first ventured into personal finance in 1985.
Given the post-2008 anti-banking sector sentiments in the wake of continuing economic woes, MS is banking on its decades of trusted image to lure banking customers to its new offering.
Like the rest of the high street, MS has been witnessing decline in sales. Last month it slashed its sales growth forecast, signaling weaker consumer spending.
The group serves around 21 million customers each week.
Oriel Securities analyst Mike Trippitt said the venture "makes complete sense" for both parties.
Source:Britain News.Net
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