Marks and Spencer (MKS.L) bank has revealed that it plans to close all current accounts by this summer, as well as shutting 29 branches located inside stores.
The retailer, which has around 3 million banking customers across the UK, said the move was a result of a surge in online banking.
It will now focus on more digitally-facing products and services, such as credit cards and rewards, with plans to merge with its Sparks card.
M&S will continue to offer its existing range of general insurance, savings and loan products.
Paul Spencer, chief executive of M&S Bank, said: “We have developed the next phase of our transformation programme to enhance the M&S shopping experience, with an expanded range of payment solutions, which are increasingly integrated with M&S – both in-store and online - offering customers a more seamless shopping and payment experience.
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"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, at 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."
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