Metro Bank: can customer service win over competitive rates?

Metro Bank prides itself on customer service and convenience. We explore how its products measure up to its values and what customers have to say.

Metro Bank aims to attract customers with convenience and goood customer service rather than competitive rates and switching incentives.

But does it work? As it hits the one million customer mark, we take a closer look at Metro Bank to find out if it's really the shake-up that we’ve been hoping for.

'People buy from us'

The head office looks just like any other Metro Bank branch so it’s easy to believe you’re in the wrong place.

Rather than being hidden away half-way across the city, bosses are upstairs, right above the Holborn ‘store’ (not branch):

“We don’t sell things – people buy from us,” says Iain Kirkpatrick, Metro Bank’s managing director of retail banking.

At each Metro Bank you’ll be greeted by a customer service rep who will direct you to where you need to go. Stores are open until 8pm on weekdays, a big draw for customers.

Between that, the free pens and lollipops, the dog water bowls and the kids colouring-in sets, you can see where the bank is trying to win its points.

The whiteboard in the staff room exclaims ‘Fans! Not customers’, the philosophy of Metro Bank founder, Vernon W. Hill II. Instead of sales targets, staff are encouraged to write stellar examples of customer service.

This is all very well, but is it a bit too gimmick-y?

Metro Bank’s products

Despite pushing for more information about who they aim their products at, Kirkpatrick insists "we’re a bank for everybody”.

While that may be true, it's fair to say that it's products fall far short of its rivals. The bank's only credit card, for example, has no interest free offer. By contrast, rival banks will give you 0% for over 40 months.

Likewise, its current account offers little in the way of incentives, although the fact it doesn't charge for European transactions makes it a popular second account for savvy customers.

Kirkpatrick claims the lack of incentives makes for fairer products.

“The switching bonus is interesting – we really value existing customers at least as well as new customers," he says. "Existing customers are effectively paying for incentives to new customers.

“It’s the same with savings – you get a bonus for your first year at a higher-rate and then they’re put onto a much lower rate without really knowing.

"Now they have a savings offer for new customers that existing customers don’t get.”

Safety deposit boxes

As with bank branches themselves, Metro Bank has stepped in with another service disappearing from the high street: safety deposit boxes.

Boxes vary in size and cost between £200 and £675, with people putting away precious family jewellery, keepsakes and heirlooms.   

They’re kept in a vault in the back of the store. Kirkpatrick assures that they’re secure as they’re out of the way and the bank is never shut for more than a day at a time.

Keeping up with growth

Rather than moving out into other products, Metro Bank is looking to expand its bases.

“We won’t move into other markets like insurance," says Kirkpatrick. "We don’t think that’s our area of expertise.”

But how do Metro Bank and other challengers expect to maintain the same level of customer service as their networks grow?

Kirkpatrick talks about how easy it is to get complacent alongside the importance of being really well connected, both with the people you work with and the wider industry.

So, what do the customers think?

Metro Bank has won multiple awards for trust, showing solid loyalty from its customers.

But looking around Twitter and Google, the reviews are very mixed.

Amongst the good comments are customers who are relieved to have finally had positive customer service and a personal touch to their visit, a testament to Metro Bank’s values.  

Hi Sophie, thanks for the wonderful feedback! We'll be sure to pass your kind comments on to the team! #BankingRevolution

— Metro Bank (@Metro_Bank) July 6, 2017

On the bad side however, there are complaints of long queues and a lot of staff who seem to be standing around and not doing anything. It seems to be where the bank’s walk-in, no appointment ideal falls down.

@Metro_Bank waiting in Reading branch for password reset. Second in the queue, 40 min waiting time and loads of empty desks. Not good 😤

— Adam Tyszkiewicz (@adamtysz) March 3, 2017

All that said, Metro Bank has a growing customer base and rival banks are taking tips on customer service (think RBS and the dog water bowls), so the revolution is clearly making an impact.

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