moneysupermarket.com - Launch of Metro Bank
Commenting on the launch of Metro Bank, Kevin Mountford, head of banking at moneysupermarket.com, said: "After much hype we've finally seen the launch of the first new high street bank for more than 100 years. Metro Bank's launch must be welcomed, as we have seen a lot of consolidation in the sector over the last eighteen months, and more competition can only be good for consumers. However, unlike Tesco and Virgin which have the ability to create large scale banks relatively quickly, Metro has a difficult task on its hands as it has to build a brand - and customer base - from scratch.
"It is difficult to see where Metro Bank will distinguish itself from its competitors. It has been open in stating that it won't be chasing customers through the use of ‘best buy' products; instead it will focus on service and doing things differently. The challenge for Metro Bank is putting this into practice.
"To open an account you have to go into a branch - something easily done if you live or work in central London. However, the lack of online account opening facilities will really restrict the growth opportunities for Metro and I struggle to see how they will compete effectively against much larger rivals. We are aware that Metro Bank has plans for expansion into new regions, however at present I suspect any success will be limited to the central London area.
"Longer opening hours, safety deposit boxes, debit and credit cards and new cheque books printed in store, and water and biscuits for dogs are all positive factors to help customers, but all that glitters is not gold. Service is important but customers will need to ensure they are getting the best deals available and the right products for their needs rather than being fooled by the sparkling new shop front and traditional banking approach. There is already a great deal of competition in the UK banking market and consumers should take this opportunity of a new entrant to re-assess their financial products and ensure they aren't missing out on a better offering."