MetroBank – “America’s Next Great Bank” – Coming Soon
NOTE: I’m writing this post because I’m fascinated by the power of branding. Branding is something that Vernon Hill and Commerce Bank have done very very well – and I’m sure (as you’ll read below) his next ventures will take it a step further.
Vernon Hill II – the founder and former CEO of Commerce Bank in NJ, which has been since renamed TD Bank is the banking industries equivalent to Barry Sternlicht. Hill understands branding and what it takes to create a great brand that people ask for and recognize from afar.
Please note: Commerce Bank (Headquartered in Mount Laurel, NJ) was bought out by TD, and as of November 1st, 2008 the Commerce Bank name was changed to TD Bank. For simplicities sake, all references to Commerce Bank are in regards to the company which is now known as TD Bank unless otherwise noted.
In 35 years he took Commerce Bank from a one branch operation into a company that has almost 400 branches up and down the East Coast of the US. Probably 75% of that growth occurred within the past 10 years. Commerce Bank became so popular because they offered things that most other banks didn’t – 7 day a week banking, open on holidays, late hours, instant debit cards (so you don’t have to wait a week to get the card in the mail), and next day availability of funds if deposited prior to 6PM, vs 3PM for almost every other bank in America.
Compared to other banks who would try to nickel and dime everyone, Commerce Bank was a refreshing change, and it showed. Commerce is now the 5th largest bank in the New York, Pennsylvania, New Jersey, Delaware market. Pretty impressive when you consider the four larger banks are Chase, HSBC, Wachovia and Bank of America. I always found it interesting how whenever you passed a commerce bank – the parking lot always seemed filled. If you live near a Commerce, I’m sure you know what I’m referring too.
Personally, my first bank account was with a bank called Investors Savings Bank – I loved it, and I really knew nothing other than ISB. Then as I got older I started realizing that simple things – such as being able to make a deposit with a real person after work (4PM and on) was impossible unless it was a Friday. Sunday the banks were closed. Period. Holidays – forget it, it’s almost as though the banking industry looked for excuses to close for a day they claimed was a holiday. The last and final straw was the waiting for a check to clear. It took 24 hours for the first 100 dollars to clear, and then another 2 days for the next two hundred, for the entire amount over 300, you had to wait a full 5 business days.
Since I’m not rich and dont have hundreds of dollars in my bank account – there were times when I struggled for a few days for my checks to clear – Commerce was a saving grace, and I’d never switch from it. Other banks – WaMu especially – tried to compete with Commerce, offering “fun” stores, and free checking and even late hours – but they never got the simple things – being open 7 days a week, being open until 8PM, and next day availablity. Now that WaMu was purchased by Chase bank, any progress they’ve made to deviate from the banking industries norm will most likely be erased.
My family even had a close personal friend who was an executive at ISB – I told him I switched to Commerce, and he asked why – I gave three reasons – 7 Day Banking, Late Hours and Next Day Availablity of funds. His response? You’ll regret that – no one will beat the personalized service that we are able to offer and a big bank like Commerce will never do. My response? Those three reasons are more important than personalized service. Not that Commerce doesnt offer it – I know everyone in my local branch and they know me. Convenience won out, and Im sure the majority of people will agree.
Last year, Vernon Hill was forced to retire from Commerce Bank due to questions about his real estate ownership of the property that the banks were located on. As one of New Jerseys richest citizens, most people (at least those who weren’t close to him) expected him to somewhat quietly go into retirement, maybe doing some consulting here and there.
Last week – I found out that he’s aiming for a comeback.
Almost 20 years ago, Vernon created another Commerce Bank – named Commerce Bank Harrisburg (Which I’ll refer to as Commerce Bank PA from now on) – which was a franchise of the Commerce Bank that he had been building for years up and down the East Coast. The exact reason that he took this franchising route is unknown to me – perhaps that was how he thought the bank could quickly grow – by franchising it in other areas. But nonetheless, it never grew beyond 30-odd branches around Harrisburg PA, and it was not included in the TD merger.
After his retirement from Commerce Bank in New Jersey, Vernon apparently became a large investor in First Republic Bank of Pennsylvania, a small 12 branch bank in the Philadelphia area of NJ/PA.
Additionally, he attempted (and as far as i know – is still working on) launching a new bank in the United Kingdom called “Metro Bank”. Bringing the convenience that Commerce Bank brought to America to the UK for the first time.
In early November, Commerce Bank PA announced it was merging with First Republic Bank, renaming itself Metro Bank, and beginning an aggressive expansion beginning in South Jersey and then going into new markets. They also announced what seems to be their new slogan “Americas Next Great Bank” a definite play on the Commerce slogan – with the promise of even greater things to come.
Logo for Vernon Hill's MetroBank
More details have been provided about the UK MetroBank, its expected within a year they will have four branches open, and within a decade – 200 throughout Greater London. Vernon Hill is not the primary owner of the company, but he is a major investor and is playing a big part in its growth. If Vernon is able to replicate what he did in America when first opening Commerce (7 day banking, convenience and customer serice paramount) the UK banking industry will be shaken up.
I’m very interested to see how this MetroBank will pan out – will it evolve into a viable competitor to what is now TD Bank, and allow him to expand throughout the country, and then throughout the world? Vernon is not a force to be reckoned with, with his background and connections he has the ability to get the job done. Lets see if he can pull it off once again.
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Comment by Anthony Greenfield on December 19 2008:
An excellent review of the history of Commerce and Vernon Hill. I had the exoperience of meeting him first in 1985 when he loaned me a substantial amount for my business. Despite the reticence of other bankers, Vernon Hill met with me and loaned me the sums necessary to expand business. All loasns were repaid and I continued to borrow and repay many times. I also invested heavily in Commerce stock and earned a very great gain upon selling at the merger with TD. The only concern now is to pay the capital gains taxes next year, a fortunate problem.
Having met Venon Hill many times I found to be very warm and gregarious, and always interested in the welfare of my enterprise. The staff at the former Commerce was positive and motivated, working in a positive and creative enviornment. Upon the entry of TD I foresee a disruption of the culture that worked so well, and a destruction of the very magic that was inculcated at Commerce. I was even very sad to see that a building on Springdale Road had the name of Robert Beck, deceased attorney, board member,friend and founder of Commerce, stripped from the building.
The penchant for destruction of the Commerce brand seems to be excessively hasty and probably a prescription for degradation in the furure.
If you do have the chance to pass these comments to Vernon Hill I would be pleased as I reside in the same town as him and know of the mental anguish sustained when the work of a life time is trashed and dreams are interfered with.
I anticipate following closely the Metrobank progress and will probably invest hoping to again prosper through Vernon Hill’s creativity.
Comment by Chuck on January 15 2009:
Yah, seems like a great brand name and idea. Should really shake the market up! I was over in England UK last week when I read about it, couldn’t find them though. They have co.uk over there I tried http://www.metrobank.co.uk (Duh! obvious choice) and it came up as available domain, bit weird. Maybe something going on in the background before launch date. Anyways, hope it works out for Vernon, as you say.. a branding genius, Go MetroBank !!
Comment by Andrew Calvo on January 15 2009:
From what I know the MetroBank hasn’t opened any locations in England yet or done anything besides announce their intentions to open in England. I’m suprised myself to find the metrobank.co.uk domain is still available.
Comment by Chuck on January 15 2009:
Ya, a sign said the domain is for sale !! along with “metroCARD.co.uk” !! That’s like.. marketing possibilities heaven!! don’t you think? Surprised by it, have to say.
Comment by Sharleen on January 28 2009:
I was looking at this for a freelance article coming up. Anyone know what the website is? Chuck, if you’re still on to this I tried it on google and got this: http://www.institutional.co.uk/ ??
Is that it?
Comment by Andrew Calvo on January 28 2009:
They do not have an operating website yet. Since the brand is still in its infancy stages, I dont expect to see anything up for a few months at a minimum. That institutional website is nothing more than a way to sell (or lease) the domain name or other like-domain names.
Comment by Sharleen on January 28 2009:
Sorry, I only briefly looked at it.. you’re right. Looks like they’ve got the all important brand name though! Can’t see anyway around that. Had a look at http://www.metrobank.com and looks like someone else has got that one too. Kinda strange because if you want to launch a high profile brand nowadays, you just gotta have the domain addresses all sewn up. What about their seamless marketing and branding plans? You have to get those in place well before the launch date. Guess we’ll find out!
Comment by Andrew Calvo on January 28 2009:
Thats the same story with Vernon’s old company Commerce Bank, and the reason why TD Bank in america is not called TD Commerce Bank.. The Commerce Bank brand was already used in some states.. It’s odd that he’d do the same thing with another bank – use a brand name that is already used.. Potential lawsuits down the road, we’ll have to see what he has up his sleeve!
Comment by Sharleen on January 29 2009:
The other option of course is he could always actually just buy them! Seeing as both the domains seem like they are available for sale. In the big scheme of things, I’d say he’s lucky they’re available.
Comment by Hubert Danner on June 15 2009:
well not happy at all. Cant sign on cant get anyone to answer the phone at any branch. If it was Comerance there would be know problem at all i would of talk to someone an hour ago. If this is a trent then i will surely close all my acount ASAP.
Comment by Kimberly D on July 15 2009:
Vernon kept his employees smiling. I started for Commerce in 96 at age 16. I am now looking at a lay off from TD. It is a very scary thought.
Comment by Rosanne Vasko on July 22 2009:
Since the change to Metro, the quality of banking has declined. The online banking is atrocious. I tried to do a transfer from one account to the other. I thought that I had successfully transferred money. (the metro system is harder to read than commerce)For whatever reason, whether it was my fault or the banks fault, the transfer did not go through and I incurred OD charges of $148.00…absolutely ridiculous. I was told that since I was a good customer they could do a one time reversal of one fee of $37.00. Are you kidding me? If it was Commerce none of this would have happened in the first place. I’m still waiting to find out if they will reverse the rest of the money. I work for the state of PA and will only be receiving two days pay on Friday and I have a child with a birthday on the 28th. I definitely didn’t need this right now. I know one thing, if they do not reverse the rest of the fees, I will be taking all of my accounts somewhere else.
Comment by Kathy on August 26 2009:
As a previous officer of Commerce Bank I have nothing but great things to say about Vernon Hill and his organization. He is a wildly successful business man who took banking to a level where other banks could not touch. Some referred to it as a “Cult”, I called it my family. TD Bank will eventually change everything we all knew and loved about Commerce. It’s happening now and will continue until it’s just another big bank. Kudos to Metro Bank. I’m sure it will turn to gold as does everything Vernon Hill touches. I’ll be there to reap the rewards as I did at Commerce.
Comment by patience, p on December 22 2009:
I am so glad that Mr. Hill has opened another bank, I am so fustrated with the so called TD bank. Things have changed so much, each time I look at my account, I get so mad. Debit and Credit are not reflected ontime. You’ll see me soon at Metro bank.
Comment by tony G. on March 15 2010:
Please hurry and open up a brqnch in central new jersey, flemington, whitehouse area. TD bank is horrendous and not at all what Commerce was. I need my old bank back, I need the personalized service, the friendly face, tellers who know how to work with customers. Nor robots who spew the corporate line. HURRY UP and open in Central Jersey