Metro Bank PLC is a retail bank operating in the United Kingdom, founded by Vernon Hill in 2010. At its launch it was the first new high street bank to launch in the United Kingdom in over 150 years. It is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index.
History
Metro Bank PLC was granted its licence by the Financial Services Authority on 5 March 2010, the first high-street bank to be granted such a licence for over 150 years. It planned to open between 200 and 250 Stores in Greater London within 10 years of starting up. Its first Store opened on 29 July 2010 in Holborn.
In 2012, Metro Bank raised an additional $200 million in funding from investors including Fidelity, Steven A. Cohen of hedge fund SAC Capital Advisors, and New York real estate investors the LeFraks and David and Simon Reubens. In the same year, Forbes Magazine reported that Metro's flagship Holborn branch had "...garnered $200 million in deposits, four times the total at the average mature American branch."
On 2 May 2013 the Daily Telegraph reported that, following a loss of £8.8 million in the first quarter of 2013, Metro Bank's pre-tax losses had exceeded £100 million in less than three years since its launch, but the bank stated that these were planned for, and were "a result of its growth initiatives". In an interview with the Financial Times, Hill said the bank was "...in line with the business plan to rapidly grow this company,†he added. "Our primary goal is to expand the business . . . and profit certainly will come."
Metro Bank increased its account holders by 50% in the first half of 2013 for a total of 200,000 customer accounts, including 15,000 business accounts. It was aiming to have 200 UK stores open by 2020. Metro Bank acquired SME Finance in August 2013, and rebranded the business as Metro Bank SME Finance in May 2014.
Services
Metro Bank provides banking services to personal and business customers. It is authorised by the Prudential Regulation Authority and regulated by both the Financial Conduct Authority and the Prudential Regulation Authority.
In addition to traditional banking services, the bank offers non-traditional services, including:
- quoting a time of 15 minutes to open an account at a Metro branch
- a "pet-friendly" policy at stores, such as free dog biscuits and water for customers' dogs, of which Hill said, "Customers think that if we take care of their dogs then we will also take care of them." The company offers a refund to customers who rehome a pet from the Battersea Dogs and Cats Home and is the official banking partner of The Kennel Club. Metro Bank also won the Kennel Club’s Open for Dogs Competition 2011.
- coin counting machines for customers to sort and deposit change
Management
Hill received the Institute of Economic Affairs’ Free Enterprise Award in April 2013. The organisation cited him as "a remarkable entrepreneur who has identified a clear opportunity and entered the UK banking scene at a time when the sector has been under constant fire".
Craig Donaldson, the Chief Executive Officer, started his career on the Barclays graduate scheme in 1995. Later he worked for the Royal Bank of Scotland where he met Hill. Together they decided to set up a UK equivalent to Commerce Bancorp. This idea grew into Metro Bank.
References
External links
- Official website
