Fishburn Hedges

29.07.2010

Metro Bank opened today with fanfare, pastries, a brass band, a stilt walker, dog biscuits and women dressed in sleek red dresses at a branch on a busy street corner in central London. 

I’m not sure how much the commuters at Holborn appreciated the noise, but the pastries were certainly going down a treat. Much has been written about Metro Bank’s ‘gimmicky’ marketing, perhaps reflecting CEO Vernon Hill’s background in the US. However, Metro Bank says it is the first new UK bank in over a hundred years (ignoring First Direct, internet banks like Egg or Citi’s attempts to expand in the UK about 30 years ago), and claims to signal the beginning of a revolution in banking.

So naturally everyone is watching.

Of course we all bemoan the state of retail banking. Those of us who have had the same account all our lives still frequently complain of the hours lost in branches or over the phone trying to complete simple tasks with our own money. We question why banks make this so difficult.

Metro Bank promises us branches that will be open from 8am-8pm, offer seven-days-a-week counter service, free change machines and a fast-track current account opening procedure which could see new customers walking away with a secure debit card and pin number within 15 minutes.

So, will the likes of Lloyds, Barclays, NatWest and HSBC be quaking in their boots and heed the call for more flexible customer service? Particularly since Tesco Bank and Virgin Money will soon be hot on their heels too.

Why would they?

Consumers have had the power to change the retail banking industry for years, by voting with their feet, learning about what else is on offer and making banks work harder to earn the loyalty of millions of their customers.

Breaking into the UK banking market, which is far more homogenous than the US, will be a huge challenge for Vernon Hill’s latest project, and other new banking entrants, but consumer inertia is, and will likely remain, the Big Banks’ best friend.

My colleague Jason Nisse has been down with a video camera to show us the new branch, so you can see for yourself:

Metro Bank from Fishburn Hedges on Vimeo.