M&S in talks to create ‘super app’ for bank and loyalty cards as part of shake-up
M&S is in talks to create a banking and loyalty car ‘super app’ as part of a massive business overhaul.
The retailer and HSBC, owner of M&S Bank, are about to announce a new long-term relationship agreement. Sky News.
M&S Bank currently offers credit cards, personal loans, travel insurance, store payment cards and ‘buy now pay later’ credit to more than three million UK customers.
Sources have now said that long-running talks between M&S and HSBC have focused on striking a new deal for the brand before the current partnership agreement expires in the coming weeks.
Fenchurch Advisory Partners, an investment banking boutique, advised M&S on the talks.
Sources say M&S Bank could launch a combined banking and loyalty card super app as part of the new deal.
However, M&S and HSBC declined to comment on the measure.
M&S Bank offered current accounts before 2021.
However, the bank closed this product offering on August 31, 2021, a shock move that also resulted in the closure of all 29 retail bank branches on July 2 of the same year.
Since the shake-up, the bank has shifted its focus entirely to credit cards, insurance and rewards offers.
The renewed partnership with HSBC will dispel rumors that M&S Bank could follow Sainsbury’s and Tesco, which have sold their banking businesses in recent weeks.
In January, Sainsbury’s announced it would wind down its banking division, Sainsbury’s Bank, as part of plans to focus on retail.
Meanwhile, Tesco said last month it would sell its bank to Barclays in a deal worth an initial £600 million.
It is understood that a large number of M&S customers who have applied for a credit card in recent months have had to wait up to two months for a response.
The banking department of the major street giant has been flooded with credit card applications since November last year.
M&S Bank has some of the most competitive 0% credit card offers in the UK.
However, a surge in recent applications is believed to have created a backlog, leaving thousands of customers waiting months to hear if their application has been approved.
The delays left many households in the lurch over the Christmas period.
This is because when you apply for a credit card, you shouldn’t immediately apply for a new one, as each application leaves a “hard search” on your credit report, which can hurt your credit score – especially if you’re subsequently not accepted. .
M&S Bank is now contacting affected customers to apologize and offer them compensation for the long delays.
In addition, last week the lenders announced that Virgin Money had agreed to be taken over by Nationwide Building Society in a £2.9 billion deal.
Nationwide said the merger would allow the company to offer members a wider range of products and services.
Virgin Money has around 6.6 million customers in Britain and 91 branches, while Nationwide has 16 million members and 686 branches.
While details have yet to be finalized, the deal would allow the two brands to operate as separate entities. The Virgin Money brand would remain for six years before being rebranded as Nationwide.