Metro Bank, the first new UK high street bank for 100 years opens the doors to its first branch today.
The new bank’s first branch, or "store" as it prefers them to be called, opened at 8am this morning at One Southampton Row, Holborn, London. It is set to be followed with an Earl’s Court opening next week.
A further 12 stores are planned in Greater London over the next two years. It plans to roll out 200 stores over the next decade.
Anthony Thomson, co-founder and chairman of Metro Bank said: "We have been preparing for this day for a long time and are delighted it’s finally here. We plan to offer our customers a great retail experience, and we want to make banking fun for everyone."
Steven Jackson of Beatmydebt.com welcomed the launch. "A new bank on the high street will help increase competition and drive up service standards for all bank customers. With all the bank mergers we have seen in the past few years, this can only be a good thing" he said.
Improved customer service
And in a coup for a new bank it has joined the LINK ATM network, giving its customers access to the entire UK cash machine network.
In addition, around 100 million UK-issued LINK-enabled cards, essentially all debit and ATM cards issued by significant UK banks and building societies, can be used in the Metro Bank cash machines installed in their new branches.
Edwin Schooling Latter, managing director, LINK Scheme said: "I am delighted to welcome Metro Bank into LINK which opens up over 63,000 UK cash machines to their cardholders. No other scheme can match this breadth of access or convenience in the UK."
The bank, which is adopting a service-led offering to try and tempt people to switch lenders, has been driving publicity with bold advertising around London since the beginning of the summer with the line "love your bank at last."
Metro Bank is relying on the knowledge that 93 per cent of bank customers have said that level of service and convenience are more important than rates, and, as a result, it is bending over backwards to please. It also promises on its website to have "no stupid bank rules".
The bank, which will be open seven days a week and have longer opening hours, aims to provide bank cards to customers "on the spot" and promises customers they can open a new account within 15 minutes.
The bank is offering fixed and variable rate products up to 80 per cent loan to value (LTV) - it has a two-year variable rate mortgage at 3.5 per cent , a two-year fixed product at 4 per cent and a three-year fixed rate at 4.5 per cent up to 60 per cent LTV.
Fast food service principles to be used
The team behind Metro Bank includes American multimillionaire Vernon Hill, who made £5.6bn from the sale of his Commerce Bank in 2008. Hill borrowed the fast-food principles used in Burger King franchises and applied them to banking. It was a success and he now plans to bring the method to the UK.
Hill, co-founder and vice chairman added: "Our focus will always be the customers, both retail and business, and making sure we do the right thing by them.
The British public deserves a better banking experience, and Metro Bank intends to give it to them, where, when and however they choose".
Metro Bank’s Thomson and Hill, and chief executive Craig Donaldson, will be kicking off their new bank by greeting new customers for the first three days with give aways including free breakfasts, smoothies, popcorn and oyster card holders.
Dogs will also be allowed in all stores, and have access to dog treats – a novel concept pushed by canine-lover Hill.