Of Special Interest
- Next downturn unlikely to be as bad as 2008, according to S&P
- FCA reveals findings from first cryptoassets consumer research
- US consumers favour single mobile app for banking and payments
- Banks suffering major IT shutdowns every day, ‘Which?’ reveals
- The US will be a key offshore centre in 2019, says GlobalData
- Debit industry changes markedly in 10 years of the Debit Issuer Study
- UK's ‘Big Five’ face ‘too big to compete’ as small challengers secure stellar returns
- Banks as vulnerable now as before crash, says new study
- Leverage ratio a constant conundrum for European and US banks, says SNL
15th November 2011
Metro Bank UK fails to sell mortgages
Metro Bank was revealed to have made just 100 mortgage loans since opening 15 months ago. Metro Bank planned a slow start with a target to open just 10 branches in the first two year and has opened 9 to date.
The findings have been used by some commentators to suggest there is little hope for new banking entrants. This is not supported by the facts with Aldermore, launched at the same time as Metro having attracted 3,000 customers.
Metro Bank has been clear from launch that its value proposition comes from the levels of service offered and not from offering the lower loan / higher deposit rates. Perhaps the real lesson from the figures is that customers may be willing to pay 1/2%, 1% or even more extra on short term credit in return for professional and friendly service they are unwilling to do the same on a mortgage where it could cost thousands or even tens of thousands more during the full mortgage term.