Metro Bank granted FSA banking licence

5 March 2010 | By Natalie Thomas

Metro Bank will begin with two stores in London and deposits will be covered by the UK Financial Services Compensation Scheme.  

The first two Metro Bank stores will open in Q2 of 2010 at One Southampton Row, Holborn and on the corner of Cromwell Road and Earls Court Road in South Kensington. The next two stores will open at Fulham Broadway and Borehamwood, Hertfordshire.

Metro Bank intends to build a network of more than 200 stores in Greater London over the next 10 years.

The bank has not revealed what products it will offer but has on previous occasions told Mortgage Strategy that it will only offer direct deals.

Metro Bank’s co-founders are Anthony Thomson and Vernon Hill.  Hill was the founder of Commerce Bancorp which grew from one office in America in 1973 to $50bn in assets and 500 offices throughout the East Coast of America.

It was also recently revealed that former Openwork chief executive Keith Carby had been appointed as a non-executive director of the bank.

In addition to Carby the lender has also appointed Stuart Bernau, formerly retail director at Nationwide Building Society.

Anthony Thomson, chairman of Metro Bank, says:  “The banking environment was fundamentally changed following the credit crunch, and we have seenseismic changes in the retail UK banking industry as a result.  

“With the FSA authorisation of Metro Bank we are entering a new era of banking, one where we go back to a more traditional banking model where customer service is key and there is deposit based lending.

“Metro Bank is a retailer of financial services.  Our main focus will always be on customers, both retail and business, and making sure we do the right thing by them.  

“We believe that by providing unparalleled service and convenience, Metro Bank will stand out from other High Street banks. We know that UK banking customers are looking for a new, convenient way of banking.”

Metro Bank says it promises to ‘surprise and delight’ every customer every time by offering superior service and convenience and not have any ‘stupid’ bank rules.

Craig Donaldson has been appointed chief executive officer, formerly managing director of Retail Banking at Royal Bank of Scotland, with Paul Marriott-Clarke as managing director, retail banking, formerly managing director, Network South, Retail, HBOS.