Metro Bank works magic on customers

By Simon Watkins for The Mail on Sunday and Dan Morgan
Updated: 06:23 EST, 6 September 2010

Metro Bank hit its one-year target for customer accounts just five weeks after opening its first branch and could now accelerate its expansion programme, according to chairman Anthony Thomson.

The bank last week opened its second branch - in Kensington, west London - to add to the one in Holborn, central London.

Metro has plans for a total of 24 branches by 2013 and the timetable may be brought forward. give numbers on how many accounts had been opened at the High Holborn branch, Thomson said: 'We are talking about thousands.'

Success: Metro Bank reached its one-year target for new accounts in just five weeks

'The first branch has achieved in one month what we hoped to achieve in its first year,' said a jubilant Thomson.

The bank has never released figures for its targets, but pressed to give numbers on how many accounts had been opened at the High Holborn branch, Thomson said: 'We are talking about thousands.'

Established branches at existing banks have an average of between 5,000 and 10,000 customers each.

'Deposits massively outweigh loan requests,' said Thomson.

He said the bank was also ahead of target for enrolling small and medium enterprises as business customers.

Thomson added: 'We've said we will open four branches this year, eight in year two and 12 in year three. If account openings continue at the rate they've been going, we may look to accelerate that.

'Unfortunately, it is not just a tap that you can turn on to find new branches. At the moment we have about 20 sites we are looking at.'

Metro Bank is an independent bank and is not connected to any other established banking group. It is backed by millionaire Vernon Hill, who founded a similar banking business in America in the 1970s.

...but a few teething problems mean not everyone is satisfied

The stilt-walkers and brass bands have gone. Five weeks on and the first new High Street bank to open in more than a century was last week dealing with just a trickle of customers at its only branch.

Metro Bank was launched to a fanfare of claims about customer service quality, but the reviews last week were mixed.

Some people using the branch in High Holborn, central London, were very impressed. 'It's been better than either of us had hoped,' said Robert Bennett, 45, and his partner, Jane Rawlings, 44, from Bermondsey, south-east London.

Impressed: Jane Rawlings and partner Robert Bennett

Robert, a painter and decorator, said: 'It is such a breath of fresh air compared with other banks.

'It's the customer service that won us over. Metro has a really fresh approach. And though we love the little touches - like the water bowls and dog biscuits - what we've experienced so far makes us think that there is more to the bank than just gimmickry'.

Isobel Howard, 49, from north London, was equally pleased.

'You produce your ID and then 15 minutes later you walk out with a card that you can use right away,' she said. 'It is so much better than waiting four weeks for a card and PIN from one of the other banks.'

However, not every Metro customer was pleased. Housewife Nyla Patel, 51, from south London, said: 'They certainly have their teething problems. They say it takes 15 minutes to open an account, but it took me two hours.'

Nyla was also wrongly charged for a safety deposit box - a service the bank offers for free for the first year to over-50s. The fee sent her current account into the red.

'It is too early for me to say, hand on heart, that this is the bank to be with,' she said.

Another customer, who did not want to be named, said: 'I'm trying to open a business account, but it's very laborious. I think Metro Bank is inundated with people trying to open business accounts.

'The staff need to be given a chance to get a grip on it all before I would recommend them.'