Current accounts will be made available from autumn 2012. Mortgages will be offered by the bank at a later date.
Over the next two years M&S will open 50 bank branches within its stores with the first branch scheduled to open in July at Marks & Spencer’s flagship London store at Marble Arch.
The opening hours of the bank will mirror M&S store opening hours, around twice as long as those of traditional high street banks.
Marc Bolland, chief executive at M&S, said: “M&S is one of the most trusted brands on the UK high street and we've achieved this by continually listening and responding to the needs of our 21 million 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."
Colin Kersley, chief executive of M&S Bank, added: "We know loyal M&S customers will be genuinely excited by the prospect of banking with their favourite retailer. With over 25 years financial services experience, M&S Bank is the natural next step for M&S Money and will provide customers with a credible, alternative choice in the banking sector."
HSBC currently owns a 100% stake in Marks & Spencer Retail Financial Services Holdings however M&S Money retains its own board.
Joe Garner, head of HSBC in the UK, said: “This is our most significant innovation in retail banking since we launched First Direct over 22 years ago. It is concrete evidence of HSBC increasing innovation, competition and investment in the UK.”
