New UK bank launch is first in more than 100 years

The bank will have to ensure its IT infrastructure can live up to its brand promise

Metro Bank has today become the first bank to launch in the UK since 1872.

But unlike nearly 150 years ago, the new high street retail bank, which has said it will differentiate itself on the strength of its customer proposition, will have to ensure its IT infrastructure can live up to its brand promise.

Its first branch in Holborn, London opened its doors to retail and business customers yesterday morning and is set to be followed by two other London branches next month, at a reported initial cost of £100m.

The bank said it has plans to open a further 10 stores in Greater London over the next two years as part of a 200-plus UK store expansion plan.

Craig Donaldson, chief executive officer at Metro Bank, said: “Metro Bank will stand out from other high street banks by providing unparalleled service, convenience and value for money.

“People’s lives have changed, great retailers have moved with them and banking should reflect that, so Metro Bank will be where customers work, where they live and where they shop at weekends.”

While the new bank did not issue any details of the technology it has put in place to support its launch, it is likely that key claims including a rapid opening procedure and instant issuance of permanent debit and credit cards within 15 minutes (subject to acceptance) will be heavily supported by IT-based systems and processes.

Networks operator Cable & Wireless said the customer-centric banking offered by Metro Bank could be a breath of fresh air for the high street. But it warned that it must ensure the right technology is in place to deliver.

Phil Grannum, enterprise managing director at Cable & Wireless Worldwide, said today’s launch heralds a new era in the UK banking sector, where banks must improve customer service, access and availability.

“Systems such as integrated multimedia platforms that enable a bank to personalise communications for every single recipient and be proactive, or respond quickly, through their preferred channels are imperative. These platforms unite all inbound and outbound contact channels into a single, fully integrated system that links into a company’s databases, ensuring that customers will enjoy a more persuasive, unified experience – strengthening their loyalty, increasing sales and reducing customer churn to new competitors.”

Grannum added that investment in an “A-grade” IT infrastructure and high-speed next-generation network would ensure a faster payments initiative and allow companies such as Metro Bank to introduce new sites and contact centres as their banking services grow.