An internet banking expert has described Metro
Bank’s decision to open its doors to customers without online
banking as “crazy”.
Paul Love, a business solutions consultant at
banking technology vendor ACI Worldwide, expressed caution over UK
start-up Metro Bank and its focus on consumer convenience, citing
some of its promises as ‘headline grabbing gimmicks’.
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Metro Bank launched last month as a
revolutionary new UK high street bank, but with its online banking
service still not up and running, it has already received
criticism.
“It is a bit of an enigma why Metro Bank has
become much more branch focused in an age where branch banking is
in decline,” said Paul Love, business solutions consultant at ACI
Worldwide.
“It is crazy that it has launched without an
online presence.”
Love warned that simply being available for
consumers to talk to and introducing extended opening hours are not
all it takes to revolutionise banking.
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By GlobalData“Just because someone will be available to
talk to 24/7 does not make a bank more consumer friendly. It is
about developing relationships with customers and understanding and
anticipating their needs,” he added.
According to Love, in order to change how
consumers view their banks, Metro Bank would be required to have a
different ethos and treat customers as people, not just accounts
and numbers.
“Metro Bank is very good at creating press but
whether it lives up to its promises remains to be seen. It will get
customers but I’m not sure whether it will gain the acceptance of
the mass market.”
While MasterCard’s instant issuance technology
is a service that Love believes will add value, he dismisses
services such as dog bowls and biscuits and sweets for children in
branches as gimmicks that hold no value to customer
satisfaction.
“It seems as though Metro Bank views its
online service as a complimentary feature to its branch based
business model, rather than an alternative,” Love added.
Metro Bank is aiming to have its online
banking up and running later this week. Love added
that opening without an online channel may have been a
strategy to get potential customers to visit branches, providing
Metro Bank with more “quality” customers.
“Launching with an online bank would have
given it national reach, but would not have offered its branch
based USPs and would have put it in direct competition with the
likes of First Direct and Egg.”
Metro Bank did not respond immediately for
comment.
Love’s claims come after a report in this
weekend’s Financial Times which showed Metro Bank’s
product offers were off the pace in a number of the main product
categories, including current accounts, savings, credit cards and
mortgages.
“It is clear Metro is not competing for ‘best
buy’ business,” added Love.
He added that one of Metro’s main advantages
was that as a start-up it would not have to deal with legacy
technology systems that hamper customer service at other banks.
