Original text here from Patrice Bernard (LinkedIn)
Born in 2010, amidst the "digital" revolution, Metro Bank had the seemingly anachronistic ambition of reinventing the in-branch banking relationship. Despite its commendable efforts and some notable successes, it must now sadly face the harsh reality: its model inherited from another era is no longer sustainable.
The endeavor seemed risky from the start, but it was not devoid of a certain logic that should resonate with the industry. Refusing to believe in a complete transition to remote interactions, bolstered by numerous surveys that, even to this day, assert that consumers (and business leaders) prefer the option of dealing face-to-face with a human representative, Metro Bank aimed to adapt its historical operation to new expectations.
Among its key original features were some major demands of the internet generation: extended access hours (if not reaching the 24/7 availability of online services), unprecedented responsiveness (15 minutes for account opening, including the issuance of payment means), optimized customer service, and the freedom to select a channel at any time for transactions, also represented by well-crafted web and mobile applications.
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After various financial setbacks, which nearly cost it its independence this autumn, Metro Bank is now preparing to reconsider these advantages. Indeed, a drastic cost-saving plan will lead it to reduce its workforce by 20% by 2024, primarily through a reduction in the opening hours of its branches (which have already shifted from Monday to Saturday, from 8:00 AM-8:00 PM to 8:30 AM-6:00 PM), risking losing at least part of what sets it apart from the competition.
The most optimistic will certainly argue that the mistakes made in managing the young company have contributed to this outcome. Nevertheless, it had embarked on an impossible mission. How could it reasonably hope to establish a viable economic equation by replicating the availability and immediacy of "digitization" in a physical network, the feasibility and efficiency of which rely exclusively on technology?
In summary, the noose is inexorably tightening around the model of the bank branch, caught between, on one side, its latent inability to meet the profound expectations of customers now shaped by the internet, and on the other side, the pressure on prices (and revenues) exerted by the excessive automation of online operations. Certainly, there is still a window of opportunity for customers willing to indulge in contact with a local advisor, but it will soon lead to private banking as the only option.
