Metro Bank
A United Kingdom retail and commercial bank built around customer-focused branches and digital banking services.
Last updated October 6, 2026
AI crawler reads
6requests
1companies- Anthropic6
- Profile
- 2
- Controversies
- 2
- JSON · MD
- 0
- First read
- Nov 4, 2026
- Latest read
- Nov 4, 2026
From this site's server log
Overview
Metro Bank PLC is a United Kingdom retail and commercial bank founded by Anthony Thomson and Vernon Hill in 2010. It was established as a challenger to the country's large incumbent banking groups and became the first new high-street bank to receive a UK banking licence in more than 150 years. The bank received its licence from the Financial Services Authority on 5 March 2010 and opened its first branch in Holborn, central London, on 29 July that year. The brand was designed around a highly visible branch model rather than a purely digital proposition. Metro Bank's stores were intended to provide extended opening hours, accessible service and a distinctive customer experience, supporting personal current accounts, savings, mortgages, lending and business banking. Its original expansion plan envisaged between 200 and 250 branches in Greater London within a decade. The bank also developed services for small and medium-sized enterprises, including through its acquisition of SME Finance in 2013, which was subsequently rebranded as Metro Bank SME Finance. Metro Bank's early years were characterised by heavy investment in branches, technology, staffing and customer acquisition. It raised substantial additional funding in 2012 and continued to report losses while pursuing growth. Management presented those losses as a planned consequence of building a new banking institution and expanding its customer and deposit base. The bank later broadened its lending and distribution activities through the acquisition of the RateSetter peer-to-peer lending business and the purchase of RateSetter's loan portfolio. A major turning point came in January 2019, when Metro Bank disclosed that it had incorrectly classified a portfolio of commercial loans for regulatory capital purposes. The error affected approximately 10% of its loan book and meant that the bank had not held sufficient capital against the relevant exposures. Metro Bank announced a £350 million capital raising and reduced its growth plans. The disclosure triggered a sharp fall in its share price, withdrawals by some large depositors and regulatory scrutiny. In December 2021, the Prudential Regulation Authority fined the bank £5.38 million over shortcomings in governance and controls connected with the risk-weighting and classification of commercial loans. The bank underwent further strategic and ownership changes after the 2019 difficulties. Dan Frumkin became chief executive in February 2020, while Robert Sharpe became chair in November 2020. Metro Bank agreed to acquire Retail Money Market Ltd, the company behind RateSetter, in 2020 and completed the purchase of the platform's loan portfolio in 2021. It also sold a £3.04 billion residential mortgage portfolio to NatWest in 2021, a transaction intended to support balance-sheet management and capital efficiency. In October 2023, Metro Bank completed a £325 million capital raise alongside £600 million of debt refinancing. Jaime Gilinski Bacal became the controlling shareholder with approximately 53% of the company. The transaction followed market speculation about potential takeover interest, including reported consideration by JPMorgan Chase and an offer said to have been rejected from Shawbrook. Metro Bank remains a UK-focused bank serving personal and business customers through branches and digital channels. It is authorised by the Prudential Regulation Authority and regulated by both the PRA and the Financial Conduct Authority. Its reputation combines challenger-bank innovation and a service-oriented branch proposition with the legacy of significant capital, governance and compliance challenges.
History
Metro Bank was established in 2010 as a new UK banking venture seeking to challenge the established high-street banks. Its founding concept emphasized a visible branch network, customer service, convenient opening hours, and a service culture influenced by challenger-bank models outside the United Kingdom. The bank’s launch was significant because the UK had seen limited entry by new full-service banks capable of competing directly for household and business deposits. In its early years, Metro Bank built its identity around branches that it called stores, combining face-to-face service with telephone, online, and later mobile banking. The business targeted personal customers as well as small and medium-sized enterprises. Current accounts, savings, mortgages, loans, business banking, and selected branch services formed the core of its proposition. Safe-deposit boxes and extended opening hours helped distinguish the brand from many conventional bank branches. Metro Bank expanded its network and customer base during the first part of the 2010s. Its strategy required substantial investment in premises, staff, technology, and regulatory capital before the branch network could achieve mature profitability. The bank subsequently became publicly traded in London, giving it access to public equity markets and a wider shareholder base. The bank encountered a major setback in 2019 when it reported errors related to the risk weighting of certain commercial loans. The issue raised questions about internal controls, financial reporting, governance, and the sustainability of the bank’s expansion strategy. Investor confidence weakened, senior leadership changed, and Metro Bank had to focus more closely on capital strength, lending discipline, risk management, and operating efficiency. The episode also illustrated the challenges faced by newer banks attempting to grow while competing with large, established institutions. Following the 2019 difficulties, Metro Bank’s strategic emphasis shifted toward strengthening the balance sheet, improving governance and controls, managing costs, and concentrating on relationships with personal and business customers. Like other UK banks, it has operated in an environment shaped by prudential regulation, changing interest rates, digital competition, consumer-protection requirements, and evolving demand for branch services. Metro Bank remains a UK banking brand serving personal and commercial customers. Its distinctive historical contribution is its attempt to make branch-based relationship banking central to a modern challenger-bank proposition rather than treating branches solely as legacy infrastructure. At the same time, the bank has continued to use online and mobile channels, reflecting the hybrid service model expected by contemporary banking customers.
- 2019
Loan risk-weighting disclosure
[2]The bank disclosed errors relating to the risk weighting of certain commercial loans, prompting regulatory scrutiny, leadership changes, and a strategic reassessment.
- 2016
Public listing
[2]Metro Bank became a publicly traded company on the London Stock Exchange.
- 2010
Metro Bank established
[3]Metro Bank was founded as a new UK challenger bank focused on retail and business banking.
Products and positioning
A challenger bank positioned around relationship banking, accessible branches, extended opening hours, and a combination of physical and digital service.
Retail banking
Personal banking
Metro Bank’s personal-banking range includes current accounts, savings accounts, lending, mortgages, and credit cards. These products are supported through digital channels and, where available, branch-based service. The brand’s historical differentiation has been its emphasis on human assistance and accessible physical locations.
Commercial banking
Business banking
Business banking is a core part of Metro Bank’s proposition, serving small and medium-sized enterprises alongside broader commercial customers. Services include business current accounts, deposits, lending, and relationship support. Product eligibility, lending terms, and availability vary according to customer circumstances and the bank’s current policies.
Lending
Mortgages and lending
Metro Bank offers lending products including residential mortgages, personal loans, and business or commercial finance. Lending has been an important part of its attempt to develop relationships beyond deposit-taking. Terms and product ranges are subject to credit assessment, regulatory requirements, and periodic changes.
Ancillary banking service
Safe-deposit-box services
Safe-deposit boxes have been associated with Metro Bank’s branch proposition and provide customers with secure storage facilities at selected locations. Availability is location-dependent and should be confirmed directly with the bank.
Controversies
2021
Metro Bank fined £5.4m for reporting failures
The Bank of England's Prudential Regulation Authority fined Metro Bank £5.4 million for failures in its reporting duties, citing errors in regulatory reporting and related oversight, controls and resourcing. Metro Bank said it had improved its reporting processes and controls and strengthened risk management and governance.
2019
Commercial-loan risk-weighting error
Metro Bank disclosed errors concerning the risk weighting of certain commercial loans. The matter caused substantial investor and regulatory concern and was followed by leadership changes, capital actions, and a review of the bank’s strategy and controls.
Brand decisions
2019
Reassessment of growth and capital strategyStrategyBackground
The disclosure of errors in the risk weighting of certain commercial loans created pressure to strengthen controls, capital planning, and governance.
Action taken
Metro Bank moved toward a more cautious growth model, with greater emphasis on capital strength, risk management, operational efficiency, and balance-sheet discipline.
Aftermath
The episode became a defining turning point in the bank’s development and contributed to changes in leadership and investor expectations.
Recent events
Reported
Metro Bank announced Windsor store closure plan[5]
Metro Bank announced that its Windsor store on Peascod Street is set to close later in 2022.
Reported
Metro Bank fined £5.4m for reporting failures[4]
The Bank of England's Prudential Regulation Authority fined Metro Bank £5.4 million for failures in its reporting duties, citing errors in regulatory reporting and related oversight, controls and resourcing. Metro Bank said it had improved its reporting processes and controls and strengthened risk management and governance.
Reported
Metro Bank and Churchill Expert launch an SME insurance partnership[6]
Metro Bank entered the SME insurance market by offering seven products across 11 industries in partnership with Churchill Expert.
Reported
NatWest announces agreement to acquire Metro Bank mortgage portfolio[7]
NatWest announced an agreement with Metro Bank to acquire a £3.0 billion portfolio of prime UK mortgages. The transaction was expected to close during the first quarter of 2021.
Reported
Metro Bank partners with Clear Books[8]
Metro Bank announced a partnership with Clear Books to offer accounting software, free bank feeds and exclusive discounts to Metro Bank's small-business customers. The integration provides access to Clear Books' financial management tools through Metro Bank online and mobile banking.
Reported
Metro Bank agrees to acquire RateSetter[9]
Metro Bank agreed to acquire RateSetter for initial consideration of £2.5 million, with additional consideration potentially payable subject to specified criteria and timing. The transaction requires approval from the UK Financial Conduct Authority.
Reported
Metro Bank opened its first Sheffield store[10]
Metro Bank opened its 77th store in Sheffield city centre, its first store in Yorkshire. The store was at 58–64 Fargate and opened with social-distancing measures in place.
Reported
Metro Bank expands MCash availability across the Midlands[11]
Metro Bank's MCash on-demand cash collection and delivery service became available across its Midlands network. Businesses can request doorstep cash pickups and deliveries through the bank's mobile app.
Reported
Metro Bank removes and reduces mortgage product fees[12]
Metro Bank removed product fees on residential mortgages for existing customers and reduced product fees by £500 for all buy-to-let remortgage customers.
Reported
Metro Bank partners with fintech firms for business clients[13]
Metro Bank partnered with three companies to direct funding toward projects intended to make doing business in the UK easier. One described collaboration is with trade finance provider Conance, to provide SME clients with trade advice and access to finance solutions.
Sources14 sources
- 1Metro Bank official websitemetrobankonline.co.uk
- 2Metro Bank investor relationsmetrobankonline.co.uk
- 3Metro Bank about usmetrobankonline.co.uk
- 4Metro Bank fined £5.4m for reporting failuresmortgagestrategy.co.uk
- 5Metro Bank宣布计划关闭温莎门店sloughobserver.co.uk
- 6Metro Bank与Churchill Expert推出中小企业保险合作mortgagestrategy.co.uk
- 7NatWest宣布收购Metro Bank抵押贷款组合的协议directorstalkinterviews.com
- 8Metro Bank与Clear Books建立合作crowdfundinsider.com
- 9Metro Bank同意收购RateSettercrowdfundinsider.com
- 10Metro Bank在谢菲尔德开设首家门店yorkshirepost.co.uk
- 11Metro Bank将MCash服务扩展至英格兰中部地区expressandstar.com
- 12Metro Bank取消并下调按揭产品费用mortgagesolutions.co.uk
- 13Metro Bank与金融科技公司合作拓展企业服务crowdfundinsider.com
- 14Metro Bank fined £5m over historic failingsthetelegraphandargus.co.uk
Cite this profile: Cite the canonical profile. /brand-wiki/metro-bank-united-kingdom · Editorial policy · How profiles are compiled