New UK Bank - Metro Bank

r3nu4l

Saw this on BBC news this morning. Metro bank have opened in the UK and are keen to win over new customers. They are operating on a 'service' based model in that they open earlier, close later and will allow owners of pets to bring their pets (dogs mostly) into the bank while they conduct their business. They are aiming mostly for high-street customers and small businesses as far as I can see.

Crucially, they do NOT offer the best savings rates in the UK, nor do they think that it's a strong factor in winning over customers according to the guy interviewed on BBC this morning.

Does anyone else think this is daft? I do most of my banking online, I rarely ever go into the bank and 99% of the time, I don't care about the opening hours. For me, Savings rates and the T&Cs around that are King, not whether I can bring my bloody dog into the bank!

I was just amazed that they don't think savings rates are going to be a big factor in winning over customers! :eek:

Blackjack

Yep, its daft.
People are going to be a lot more price conscious, longer opening hours for greater cost is unlikely to attract many.

Mort5000

It will be interesting to see how they go.
15 years ago I would have loved longer banking hours, as it was sometimes tricky to get into the branch during working hours.
These days, I'm probably not in my branch more than once or twice a year.
So longer hours wouldn't be a benefit for me.
As for the saving's rate, it is pretty much the first thing I look at when picking a savings account. Anything but the best rate, or close, isn't worth looking at.
I would love to see the stats on how many pet owners, with their pets with them, are currently being turned away from existing banks.
All quite strange...

Cookie_Monster

honestly, nobody I know cares about what rates they can get off a bank except for mortgages.

It annoys me that I have to take time off work to go to a bank currently.:(

http://boards.ie/vbulletin/showthread.php?t=2055983704 Mods, merge perhaps?

r3nu4l

Cookie_Monster wrote: »

honestly, nobody I know cares about what rates they can get off a bank except for mortgages.

It annoys me that I have to take time off work to go to a bank currently.:(

http://boards.ie/vbulletin/showthread.php?t=2055983704 Mods, merge perhaps?

You mean you started a new thread without checking that there wasn't one like it already?

Well I care about the rate, a lot! You seem to be confusing current accounts with savings accounts. There is a HUGE distinction, especially in the UK where e-savings accounts are very big (I have two e-savings accounts ) A bank offering a poor savings rate won't attract savers.

See here

Metro Bank's overdraft rate will be a standard 15%, personal loans will be charged at 10%, while annual interest paid on instant access savings will be just 0.5%.

However analysts said that the mortgage and savings products being launched were not yet competitive enough to enter the best-buy tables.

"Although they are offering all these other benefits, such as longer opening hours, one of the main things for people is a competitive interest rate," said Michelle Slade, of financial information service Moneyfacts.

"If they have not got at least a reasonable rate of interest, people will discount them. They are going to struggle to get market share."

So even their mortgage and loan rates are poor as well as savings rates...

The other thing you need to remember is that almost all UK banks open on a Saturday, some until midday, others until 3PM so opening hours are not as much of a factor as these guys seem to think it is, unless you really, really want to cash a cheque at 6PM or something (begs the question, why couldn't you do it at lunch?).

Cookie_Monster

r3nu4l wrote: »

The other thing you need to remember is that almost all UK banks open on a Saturday, some until midday, others until 3PM so opening hours are not as much of a factor as these guys seem to think it is, unless you really, really want to cash a cheque at 6PM or something (begs the question, why couldn't you do it at lunch?).

half an hour for lunch. it takes at least 20 mins to travel to and from nearest bank, doesn't leave much time. And its always really busy at lunch time.

I had a look for the topic but obviously didn't notice this thread...

r3nu4l

Cookie_Monster wrote: »

half an hour for lunch. it takes at least 20 mins to travel to and from nearest bank, doesn't leave much time. And its always really busy at lunch time.

I didn't mean you in particular, I meant 'you' in general However, that's a good point but again in the UK where this bank is based, the huge majority of banks and bank branches are open on a Saturday and with internet banking as well, this is not a great incentive for UK customers.

I've seen interviews with new customers and one guy said "I don't care about any of their rates, I want good, friendly service."

Says a lot and shows that some people don't care that about shafted on rates and charges so long as the person doing the shafting does it with a smile. Each to their own I suppose.