UK Metro Bank’s Launch Success

Andrew Calvo | December 1, 2010 | 0 Comments

Three months ago, MetroBank UK finally opened its doors after a long ramp up period, and a lot of excitement from the press and the public just interested in what this new banking concept is all about.

Ever since I started this blog I’ve made posts here and there about Vernon Hill’s banking ventures – Commerce Bank/Metro Bank USA and then taking the Commerce Bank/Metro Bank concept overseas and I was really excited to see it launched in the UK. While reading a lot of news articles on the opening of the bank – from customers reactions, to “analyst” reactions, three themes always become apparent and as I customer of the original Commerce Bank – and still to this day, a customer of TD Bank (Commerce Bank was bought out by TD Financial a few years back) thought it was worth explaining to those who are not that familiar with the UK Metro Bank brand/business model.

#1 Similarity to Commerce Bank

Looking at the interior pictures of Metro Bank UK, vs what I see – even today – in the Commerce Bank/TD Bank locations its like a mirror image. It’s almost eerie how everything from the wood paneling, the fabric designs on the chairs and even the carpeting is exactly the same. It’s clear that Hill and his wife’s design team are using the successful design ideas and essentially re-releasing it.. As they say – if it ain’t broke, don’t fix it!

#2 Low Savings Interest Rates vs the Overall Market
One of the biggest complaints – really, the only complaint – I’ve been seeing about the launch of the Metro Bank brand are interest rates that aren’t as competitive as other banks in London – which people think is odd, especially for a brand new banking brand which is trying to make a big push in a market that has seen little or no real competition in decades. One story even goes so far as to say in order for Metro Bank to succeed it needs to be “competitive in rates as well as customer service.”

I’ll tell you this: Metro Bank will probably never have the best rates in banking compared to their peers, probably a few tenths of a percent higher for mortgages, or lower for savings accounts – but that’s not what is going to bring in the customer. The customer service and the Commerce Bank concept is what will win the customer.

A major cloud over Commerce Bank’s head when it was being shopped around was what larger bank would have the stomach to purchase Commerce and keep it’s “convenience” features that cost so much (7-Day banking, etc), one reason that Commerce was able to get away with not following the industry with rates was because the customer benefited in other ways – which I’ll explain in a bit.

#3 The Metro Bank (Commerce Bank) Concept
Metro Bank was launched with the tag line of “Love Your Bank At Last” and has a 4-point Metro Bank Promise: 1) Surprise and Delight every customer 2) 7 Day Banking 3) No Stupid Bank Rules 4) Satisfaction Guaranteed.

There are a few things that to this day prevent me from leaving TD Bank, and those are the things that Vernon Hill pioneered through Commerce Bank and will further refine with UK Metro Bank ..

7-Day Banking and Extended Hours – I can bank on Sunday afternoon, meaning, if I have a question on my account, I can walk in and see an account representative on a Sunday afternoon. Need a cashiers check? Same thing – no waiting for the next banking day. How about if I’m off on a holiday – Columbus Day, or Labor Day for example – great day to go to a bank right? TD Bank agrees – and that’s why there are lines in the drive-thrus and always a few people waiting on line to see a teller inside. What if I need to cash a check after work – say, 6PM? No problem. TD is open until 8PM, 5 days a week.

In case you haven’t realized – there are no other banks that are open that late – even on a Friday. In fact, Wachovia (soon to be Wells Fargo) closes every single day at 5PM – except for Friday, they are open until 6. Anyone who drives past a TD Bank can attest – there are always cars in the parking lot, no matter what time it is. It was always a running joke between my friends and I that they would rent cars and park them in the parking lot so they always look busy – nope.. Not true. They just always are busy.

7-Day Banking & Extended Hours isn’t just a gimmick, its a feature that TD Bank customers have become reliant on.. And it still amazes me that the other national banks in America haven’t caught on to it yet.

Free Coin Counting – When I was younger I’d save up my pennies, quarters, nickels and dimes. Once the container was overflowing, I’d spend a few days rolling coins, have to label the coins with my bank account number and then bring them to the bank. Sometimes I even had to make an appointment so they could count the coins over again. Commerce Bank thought to put a free coin counter in every single branch, then allow anyone – even those who don’t have an account with them – to bring in as many coins (loose, and mixed coins – they don’t have to be rolled or categorized by type) as they can and have them counted in a matter of seconds – or minutes if you really had that many. Its such a convenient, yet simple idea that has brought in thousands of customers.

No ATM Fees – If you use an ATM Card at a non- TD Bank ATM, TD Bank does not charge an ATM fee for using another banks ATM. Sure, the other bank may still charge you something but TD doesn’t tack on their own charge (but if you have over $2,500 in your account, TD will even refund the fee the other banks ATM charges). TD Bank is the only bank that I have come across (except for credit unions and savings banks) that does not charge you to use another banks ATM. I have not seen one regional or national bank that has a policy similar to that for everyone from the lower-end customer who keeps an average balance of $50 in their account to the super high end client who keeps tens of thousands in ther account. No discrimination.

Instant Debit Cards - If you open an account at TD Bank, you walk out of there with a permanent working Visa debit card. No waiting 2 weeks like every other bank I’ve ever seen for the card to be printed and then mailed out to you. Have you ever lost your ATM card, or had to have it replaced due to fraud? No problem, call their 800 number, then find the closest branch – even if its in another state and not the branch you opened your account in – and within minutes you can walk out with a working permant Visa debit card. That’s ground breaking right there.

Metro Bank is going to blow the UK banking market away. The latest stats have UK Metro Bank reaching their 1st year goals in opening new accounts and capital in only 3 months – encouraging them to expand alot faster than they expected and reach their goal of 200-250 branches within the London metropolitan market.

Congratulations Vernon, you did it again, and I’m proud to say – I’m still a fan.

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