The first branch will open in July at the retailer’s store in Marble Arch, London.
It plans to open 50 branches in its stores over the next two years, creating 500 jobs by the end of 2013. This includes 400 customer-facing roles in branches across the country and around 100 roles at the company’s head office in Chester.
M&S said it will start offering a current account from autumn 2012, with mortgages available “at a later date”.
The retailer said its bank branches would follow store opening hours, enabling customers to bank while they shop, seven days a week.
3M customers
Over 3M customers already use M&S money products, including credit cards, loans and savings. M&S said research among its Premium Club members revealed that more than 70% found the idea of a current account from M&S appealing.
M&S chief executive Marc Bolland said: “M&S is one of the most trusted brands in the UK high street and we’ve achieved this by continually listening and responding to the needs of our 21M customers.
“This bank will be built on M&S values: putting the customer at the heart of the proposition and delivering the exceptional service that sets us apart from the competition.”
Each branch will be managed by a dedicated M&S Bank team and will feature private meeting areas, self-service banking points, as well as bureau de change.