M&S Bank has announced it will close all of its current accounts and 29 in-store bank branches in the summer.

The bank plans to move online, a decision it said was prompted largely by the acceleration of online banking during the pandemic.

M&S Bank said the current account closures are driven by these services changes and a new focus on evolving its credit card and payment offerings.

The bank announced plans to launch a new reward credit card offering and a digital payment solution for M&S’ growing Sparks customer base by the summer.

The company said that its in-store travel money bureaux, located in more than 100 stores, will be unaffected by the changes.

Alongside the M&S Credit Card and travel money services, M&S Bank will continue to offer its existing range of general insurance, savings and loan products.

"As we adapt to meet the changing needs of our customers, and we deliver some new - more digitally-focused products and services – it does regrettably mean we will move away from branch-based servicing and the 29-in-store bank branches and associated current account will close this summer,” said Paul Spencer, chief executive, M&S Bank. “We're now firmly focused on supporting both our customers and colleagues through this change, and the delivery of our transformation plans, which will create new and rewarding payment solutions for M&S shoppers, both in-store and online."

Kirsty Ward, director of bank and services, M&S, said: "M&S was an early pioneer in retail financial services, and the rapid transformation in how we spend, borrow, save and protect has never been more exciting. We are striving to bring our customers the very best financial products that meet their needs today and in the future - and our priority, as set out today, is making it even easier and more rewarding to buy the things they love from us."

M&S Bank started contacting current account customers yesterday.

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