Metro Bank, the first new business bank account provider to join the High Street in over a hundred years, continues its expansion plans by aiming to raise an additional £45 million of venture capital.
The new move is hot on the heels of the new banking services provider’s launch of not only three branches in London but the first of its suburban branches in Borehamwood, Hertfordshire just last week.
Industry insiders have an understanding that the high street’s newest player is confident in its abilities to raise the majority of the needed capital from its original backers, who have already invested £75 million in the institution to facilitate its launch this past summer.
The bank’s launch had backing from the US banking entrepreneur Vernon Hill, the New York real estate developer Richard LeFrak, property investors the Reuben brothers, and investment houses Fidelity and Wellington.
The brokerage Keefe, Bruyette & Woods, based out of New York, is believed to be heading the organisational efforts for the raising of the new capital. If the original investors decline to foot the entire £45 million bill, the search will be broadened to outside investors.
While a portion of the funds will be reserved in order to satisfy the wishes of UK banking regulators, the high street’s newest little fish is growing up quickly thanks to an expansion rate that may highlight the revitalisation of the banking sector through new competition. The travel industry also underwent a paradigm shift thanks to budget airlines such as Ryanair and easyJet, effectively transforming the air travel market.
Metro has already distinguished itself from the more traditional banking providers by making its focus on a combination of high customer service values and simplified savings accounts and other financial products. The bank has been able to scoop up many customers who have come to be less than enthusiastic with the so-called Big Four banks since it opened its doors this past August.