Marks & Spencer is to close all its current accounts and shut down 29 bank branches.
M&S, which has three million bank customers in the UK, will contact them all to explain the options.
Customers can either close their accounts, or use a switching service to move their money elsewhere.
M&S Bank said it will start contacting current account customers from Wednesday, making them aware of the changes and their options, reports The Mirror.
Marks & Spencer Bank's current accounts are currently underwritten by HSBC
In-store travel money counters, which are located in over 100 M&S branches, are unaffected.
From summer 2021, all M&S Bank services will be available digitally only.
However, the bank said it will continue to offer its existing range of general insurance, savings and loan products.
Paul Spencer, CEO, M&S Bank, said "We have developed the next phase of our Transformation programme to enhance the M&S shopping experience, with an expanded range of payment solutions, which are increasingly integrated with M&S – both in-store and online - offering customers a more seamless shopping and payment experience. We look forward to sharing more details on these new products and services soon.
"As we adapt to meet the changing needs of our customers, and we deliver some new - more digitally-focused products and services – it does regrettably mean we will move away from branch-based servicing and the 29-in-store bank branches and associated current account will close this summer.
"We’re now firmly focused on supporting both our customers and colleagues through this change, and the delivery of our transformation plans, which will create new and rewarding payment solutions for M&S shoppers, both in-store and online."
The bank said it plans to launch a new reward credit card offering and a digital payment solution for Sparks customers later this year.
Kirsty Ward, director of bank and services, at M&S, said: "M&S was an early pioneer in retail financial services, and the rapid transformation in how we spend, borrow, save and protect has never been more exciting.
"We are striving to bring our customers the very best financial products that meet their needs today and in the future - and our priority, as set out today, is making it even easier and more rewarding to buy the things they love from us."
