More retailers to go into finance, says M&S boss

THE chief executive of M&S Bank has predicted that more retailers will move into financial services as the big banks continue to suffer from customer mistrust.

Colin Kersley told the Yorkshire Post that others would follow the likes of Tesco, Asda, Sainsbury’s, John Lewis and Virgin.

“The brand is stronger, the trust is stronger,” he said.

“They are starting to grow and come into the space. You will see more of that.”

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Mr Kersley, speaking after M&S Bank opened a new branch in Meadowhall, said the presence of retailers gives customers more choice in financial services.

“It’s up to them to say what they want to do with that,” he added.

He said M&S Bank is ahead of targets for registrations and 40 per cent of those who have applied for products are new to M&S financial services, which has been trading for three years.

People aged from their 30s to 60s are applying for current accounts.

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Mr Kersley is a veteran of the retail banking industry. He joined Midland Bank in 1975 and moved into HSBC in the early 1990s.

Asked how the industry has changed over the decades, he said the branch managers used to be central.

Banking then became more transactional with the development of IT systems, which allowed institutions to grow and cope with customer demands, he added.

Following the crash, Mr Kersley said banks are becoming more customer focused.

He described M&S Bank as “new-fashioned banking”.

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“Service, trust and value all have to be in there. And transparency,” he said.

The bank will mirror the opening hours of the store, enabling customers to bank whilst they shop, seven days a week.

HSBC is the ‘engine room’ for the current account, said Mr Kersley. The bank has a 24-hour call centre in Chester.

Mr Kersley said: “12 million shoppers go through M&S stores every week. We are looking to support those customers through our financial products.”