The first new entry into the high street in more than 100 years recently announced it has raised an additional £50 million in working capital.
Personal and business bank account provider Metro Bank launched this past July. At the time the bank had raised an initial £75 million; now, it has its sights set on an even larger expansion into the UK finance market.
The bank’s expansion plans were initially revealed in October by both This is Money and Financial Mail.
The financial services provider stated that the infusion of cash will help grow the number of new branches they plan to open during its initial two years of business. Metro Banks original target at launch was 12; it has since raised its goals to a minimum of 18. The bank’s ten year plan is to hit a target of 200 branches throughout the UK.
The bank already has three London locations. In addition to branches in Fulham and Holborn, Metro Bank also has a suburban Herefordshire location in Borehamwood.
US banking tycoon Vernon Hill, co-founder of the new High Street Bank, expressed his satisfaction in the successful completion of the bank’s second capital raising round. Mr Hill credited the well-received launch of Metro Bank with giving the bank the ability to accelerate its expansion plans.
Metro Bank is not the only newcomer to the retail banking market. Many other start-up banks have sought to put the High Street’s ‘Big Four’ up to the challenge.
Supermarket giant Tesco has also announced its plans to throw its hat into the ring. Additionally Virgin has recently been attempting to bid for bank branches put up on the auction block.
Metro Bank is currently privately owned. Investors for the bank include property investment moguls the Reuben brothers and fund management company Fidelity. Metro has hinted that it may decide to go public with a listing on the stock market in as early as 2012.