M&S moving to HSBC

born_again

WillPS said:

born_again said:

SusanPerb said:

born_again said:

Seems they are pulling out of this market place. They pulled out of bank Accounts in 2021. 
So they are going to focus on their core business going forward.

I doubt that M&S or HSBC are exiting the credit card business any time soon - they only renewed the partnership last year and it runs till at least 2031.

(Press release form April 2024: M&S and HSBC UK agree new M&S financial services partnership)

HSBC won't pull out. But M&S will have with the CC mover to HSBC.

M&S Bank has been fully owned by HSBC for a long time:
http://news.bbc.co.uk/2/hi/business/3885805.stm

The brand licensing arrangement runs until at least 2031 and has been extended many times before.

M&S Bank themselves say the M&S Bank brand and products range will continue following the transfer.

Exactly what are you saying M&S will have pulled out from?

Financial marketplace. Like other retailers have done.

Given I stated they had pulled out of the current account marketplace back in 2021 that was clear 🤷‍♀️

https://bank.marksandspencer.com/storecard/

SusanPerb

born_again said:

WillPS said:

born_again said:

SusanPerb said:

born_again said:

Seems they are pulling out of this market place. They pulled out of bank Accounts in 2021. 
So they are going to focus on their core business going forward.

I doubt that M&S or HSBC are exiting the credit card business any time soon - they only renewed the partnership last year and it runs till at least 2031.

(Press release form April 2024: M&S and HSBC UK agree new M&S financial services partnership)

HSBC won't pull out. But M&S will have with the CC mover to HSBC.

M&S Bank has been fully owned by HSBC for a long time:
http://news.bbc.co.uk/2/hi/business/3885805.stm

The brand licensing arrangement runs until at least 2031 and has been extended many times before.

M&S Bank themselves say the M&S Bank brand and products range will continue following the transfer.

Exactly what are you saying M&S will have pulled out from?

Financial marketplace. Like other retailers have done.

Given I stated they had pulled out of the current account marketplace back in 2021 that was clear 🤷‍♀️

https://bank.marksandspencer.com/storecard/

That link refers to shutting down their ancient instore 'Chargecard' accounts, which haven't been available to new customers for over a decade. 

There's no suggestion that M&S Bank's core credit cards and loans are being shut down, so they're clearly not leaving the financial marketplace.

born_again

Credit cards being transferred to HSBC?
Current accounts closed down.
If that not moving out of that area I don't know what is. Given the tie in (CC backend controlled by HSBC) with HSBC for years already.
If they were staying in CC, then they would not be moving accounts to HSBC control 


https://bank.marksandspencer.com/transfer-scheme/

We’re planning to transfer the business of M&S Bank to HSBC UK. This means that any accounts, products and services you currently hold with M&S Bank, including any credit cards, personal loans, savings products, general insurance services and store cards, will be provided by HSBC UK.

To do this, we’re using a legal process called a banking business transfer scheme under Part VII of the Financial Services and Markets Act 2000 (the Scheme).

The Scheme will transfer existing customers of M&S Bank and any products they hold to HSBC UK. This is subject to consultation with the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) and the approval of the Court.

WillPS

born_again said:

Credit cards being transferred to HSBC?
Current accounts closed down.
If that not moving out of that area I don't know what is. Given the tie in (CC backend controlled by HSBC) with HSBC for years already.
If they were staying in CC, then they would not be moving accounts to HSBC control 


https://bank.marksandspencer.com/transfer-scheme/

We’re planning to transfer the business of M&S Bank to HSBC UK. This means that any accounts, products and services you currently hold with M&S Bank, including any credit cards, personal loans, savings products, general insurance services and store cards, will be provided by HSBC UK.

To do this, we’re using a legal process called a banking business transfer scheme under Part VII of the Financial Services and Markets Act 2000 (the Scheme).

The Scheme will transfer existing customers of M&S Bank and any products they hold to HSBC UK. This is subject to consultation with the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) and the approval of the Court.

I've observed quite a lot of co-brand credit cards being prepared for and eventually wound up - JL/HSBC being the most relevant but also Sainsbury's Bank, Creation (Asda, IHG, Mariott), Costco/Amex, MBNA (Virgin, Emirates etc)... perhaps a few others I'm forgetting. The most common signs I've noted are

• Brand partner promotional activity ceases
• Sign up bonuses are removed
• Ongoing rewards are nerfed
• Product range whittled down
• Products are removed from comparison/affiliate, leaving only a direct route of application

Literally none of the above is occurring with M&S Bank, quite the opposite on some of them in fact! You mention the current accounts, which were terminated almost half a decade ago now, but even they too followed some of the above - in store promotional activity and switching bonuses ended before the pandemic and never returned.

Conversely, I cannot remember any of them changing the legal issuer ahead of pulling out. Sometimes it's done after the fact as part of general winding up, but that's clearly not what's going on here.

Nothing lasts forever but even if they don't intend to renew their arrangement with M&S, HSBC have got the license til 2031 and I suspect will seek to squeeze what they can from that for a few years yet!

SusanPerb

born_again said:

Credit cards being transferred to HSBC?
Current accounts closed down.
If that not moving out of that area I don't know what is. Given the tie in (CC backend controlled by HSBC) with HSBC for years already.
If they were staying in CC, then they would not be moving accounts to HSBC control 


https://bank.marksandspencer.com/transfer-scheme/

We’re planning to transfer the business of M&S Bank to HSBC UK. This means that any accounts, products and services you currently hold with M&S Bank, including any credit cards, personal loans, savings products, general insurance services and store cards, will be provided by HSBC UK.

To do this, we’re using a legal process called a banking business transfer scheme under Part VII of the Financial Services and Markets Act 2000 (the Scheme).

The Scheme will transfer existing customers of M&S Bank and any products they hold to HSBC UK. This is subject to consultation with the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) and the approval of the Court.

I think you're reading too much into HSBC tidying up its corporate structure. All that's changing is which bit of the HSBC Group has the legal relationship with M&S Bank's customers. M&S are not "moving accounts to HSBC control"; the accounts are already owned and controlled by HSBC.

Bear in mind that 'M&S Bank' is not owned or operated by M&S - it's a 100%-owned subsidiary of HSBC Group and has been for 20 years. After the transfer, those cards and loans will be run by 'HSBC UK' - a different legal entity but with the exact same ownership and using the same 'M&S' branding. 

More generally, I don't see any sign of M&S giving up on financial services. Quite the opposite in fact, given that they've: 

• Renewed their agreement with HSBC till 2031
• Moved their travel money bureaux to a new provider this year and expanded the service 
• Re-launched pet insurance with a new provider only last month

Current account closure feels like a red herring seeing as it happened years ago. News reports from the time say there were only 150,000 customers so clearly it was just a failed product when compared with the much larger credit card and loan business.

born_again

M&S have their own banking licence. Unlike other parts of the HSBC group.

WillPS

born_again said:

M&S have their own banking licence. Unlike other parts of the HSBC group.

Correct - they're making M&S Bank more like other sub-brands within HSBC UK, for example First Direct.

The separate license is likely a legacy of an earlier profit/revenue sharing agreement. JLFS was a similar setup.