The launch will create 500 new roles in the UK over the next two years, of which 400 will be customer-facing although M&S did not state if it would be offering any financial advice services.

A new current account will be available in autumn followed by mortgages at a later date. The firm said over three million people already use its M&S Money products which were launched in 1985 and said the M&S Money brand and its existing product portfolio would be rebranded to the M&S Bank brand later this year.

Branches will be open twice as long as high street banks seven days a week and will offer 24 hour access to online banking.  The first branch will open at the firm’s flagship Marble Arch store in July.

Colin Kersley, chief executive of M&S Bank, said: “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.”

Joe Garner, head of HSBC 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.”