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Metro Bank 'revolution' fails to impress the experts
29 Jul 2010Personal finance experts today raised doubts about the ability of new High Street bank Metro to carry out its promise of revolutionising the banking industry as its first products failed to impress.
The first new bank to launch on Britain's High Streets for more than a century opened in Holborn today, offering a range of current and savings accounts, credit cards, loans and mortgages.
However, Metro's instant-access savings account pays interest at only 0.5%, compared with a best-buy rate of 2.8%.
Its two-year variable rate mortgage for a buyer with a 40% deposit, meanwhile, comes with an interest rate of 3.5%, but borrowers who look elsewhere could find a rate of 2.29%.
The bank is trying to entice customers with other sweeteners, such as long opening hours and, perhaps due to the orders of its canine-loving founder US billionaire Vernon Hill, free dog biscuits.
But that wasn't enough to impress finance industry experts. “The rates aren't going to trouble any best-buy tables,” said David Black at financial analysts Defaqto.
Dilshad Issa, of uSwitch.com, added: “Metro bank's selling point is its customer service.
"Unfortunately, its products don't quite match up.
“Despite the fanfare, this might not be the full-scale banking revolution consumers have been waiting for.”
However, the group did win praise for its longer opening hours, which will see its branches open from 8am to 8pm Monday to Friday, as well as from 8am to 6pm on Saturday and from 11am to 4pm on Sunday.
The bank will be closed on only four days of the year, namely Christmas Day, New Year's Day, Good Friday and Easter Sunday.
It also promises customers that it will take just 15 minutes to open an account in one of its branches, including obtaining a credit or debit card, which will be printed in store.
Craig Donaldson, chief executive of Metro Bank, said: "We know that UK banking customers are looking for a new, convenient way of banking with easy-to-understand products and that's what we will offer.
"We will deliver a service that exceeds expectations with customers at the heart of everything we do."
Reader views (9)
LOL- I opened and account and deposited £100. The next day I called the bank to transfer £1 from my new account to the account of a friend who also opened an account. After being told it would take 3 days unless I wanted to pay a fee (to transfer between the two accounts with the same bank) they then took 21 minutes to do the transfer!
- James Nyman, Maidstone, Kent, 03/08/2010 18:57
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Im with Mick, If I ever own a dog who needs to take a dump or leek then I'll join Metrobank
- DC, Ealing, 02/08/2010 11:29
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It'll never get off the ground in a big way chap, cos the banking fraternity have poisoned the well of public trust with their past antics.
- stuart, chesterfield,derbyshire, 31/07/2010 19:48
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So where is the revolution?
- bobby, berks, 30/07/2010 12:19
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It won't be long before you join the other Legal Loan Sharks with your Credit Card promises,as far as I am concerned and my friends we will not be using your Credit Cards.
- Davey_buoy, Chertsey, 29/07/2010 18:48
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The inclusion of toilets is a big plus. I can see me making a deposit on a regular basis at my local branch.
- Tommo, Brighton, England, 29/07/2010 17:41
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I will join as soon as I get a dog.
- mickinlondon, london, 29/07/2010 12:23
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Added to which, with the anti-British rhetoric coming out of Washington, I do not think the timing is great?
- Frank, Home Counties, England., 29/07/2010 09:45
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There is no need to physically go into a bank branch on a regular basis so it doesn't matter if they're open longer hours. 99% of what you need to do can be done online or over the phone. Bottom line is this new bank still offers the same derisory credit interest rates as all the others, so there is no reason for its existence. They will be out of business in a year's time.
- Alex, Fulham, 29/07/2010 09:25
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