Metro Bank Case

493 Words2 Pages
What would entice investors to Metro Bank? Potential investors might find Metro Bank to be an attractive investment for numerous reasons. As with every investment the potential for profit is the main driver. Metro Bank has created a revolution in the UK retail banking market with its exemplary customer service. Assuming that Metro Bank can continue to hold this competitive advantage, as well as maintain their growth rate they have the potential to be a very attractive investment. Investors familiar with Vernon Hill might also consider his success with creating the Commerce Bank brand and realize the numerous parallels between the two banks. Assuming that Metro Bank can sustain their growth and that they progress similarly to Commerce Bank, there is potential for large profits gained from investing in Metro Bank as many of the projections indicate. Is Metro Bank Sustainable? Metro Bank has numerous challenges facing them in the future. The first being that currently they are only located in London, so in order for them to grow they need to expand. How they handle the expansion into other areas of the U.K. could be instrumental to their success. Their competition is fierce as five big banks basically control the retail banking market (Barclays, Lloyds, HSBC, Royal Bank of Scotland and Santander of Spain). So far in the London market, Metro Bank seems to be successful whether they can sustain that success has yet to be seen. Metro Bank’s greatest challenge lies in keeping their competitive advantage in the form of their customer-centric business model. In the best case scenario, Metro Bank stirs up the retail banking industry in the U.K. and becomes one of the banks with a large presence in the UK. This is quite possible since Commerce Bank followed a very similar business model and were able to sustain their competitive advantage. This would allow Metro Bank
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