Metro Bank co-founder Anthony Thompson has said that if he were to start a bank now he would do it differently to how he did with Metro in 2010.
Speaking at The Cass Business School the entrepreneur said that if he were to build a bank today it would be with a focus on mobile banking.
Go deeper with GlobalData
Thompson, who stepped down as chairman of branch orientated Metro Bank in September 2012, said his change in opinion was due to "an EFMA report claiming 60% of banking would be carried out via mobile in three years time".
Mobile banking has seen huge growth over the last few years with smart phone penetration currently at 64% and expected to hit 75% in 2014 according to a survey by IAB Engage.
Although the bank has said that it wants to have 200 branches, at a cost of over £2m per branch, by 2020, it has yet to turn a profit.
Thompson went on to say that some of the locations of existing Metro branches were not the best choice becasue of the cost of office space in central London.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataMetro Bank has announced that it intends to raise almost £400m ($650m) from existing and new investors to fund the opening of new branches in and around London.
In a message to shareholders, Metro Bank chairman Vernon Hill and Craig Donaldson, chief executive, said that due to "exceptionally strong demand", the capital-raising would be increased.
"The Follow-On Offer will be at the same price as the original, £13, and will consist of the sale of 7,692,308 A Ordinary (common) shares, raising up to a further £100m. This additional capital raise will be used to further support Metro Bank’s continued unprecedented growth in deposits, lending and accounts," they said.
Metro Bank has reported escalating losses over the last few months, losing £14.3m before tax in the three months to September and £38.6m in the year-to-date.
The lender’s total losses since being set up exceeded £140m following its third quarter results.
The banks deposits have grown rapidly but it has struggled to increase its loan book to a size which would show meaningful returns despite tripling its lending to £97.5m to businesses in 2012 compared to £32.3m the previous year, according to its annual accounts.
Related articles:
Metro Bank reports 75% rise in customer numbers in Q3
Metro Bank launches new internet banking service for personal customers
Good start – but let’s not get carried away
