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Deciphering international Banking Trends

Anthony ThomsonCo-Founder and Chairman

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Metro Bank

• UK’s first new bank for over 100 years

• £150 million capital• Based on US model• Retailers not

bankers

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Deciphering International Banking Trends

• Is the wrong question...

• Customers shouldn’t follow banks

• Banks should follow customers

• Look at consumer trends

• Look at retailing trends

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Great retailers are about model, culture and execution

• Differentiated model

+

• Unique culture that reinforces the model

+

• Relentless execution

= Fans not customers

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A differentiated model

• Customers want a better banking experience and they will accept a lower rate in exchange

• Service is more important than rate

• Create fans not customers

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Metro Bank model

• Retail not banking• Change the

experience– Service– Convenience

• Sales or service?• Create an emotional

bond• Fans not customers

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A culture that matches the model

• A culture that fits the model– Clear, pervasive

• Buy in or opt out• Reward for service

not sales• Fun

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The Metro Bank culture

• Find the right people

• Train them

• Empower them

• Reward them

• Measure what matters - Net Promoter Score

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Relentless execution

• Retail is detail

• Belief in the model

• Uncompromising – 100% execution

• ‘Walk a mile in their shoes’

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Model culture and execution -a better banking experience

• No stupid bank rules

• Pens

• Vans

• Dogs rule!

• Coin counting

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Better banking experience creates satisfied customers

• How satisfied are you with your bank

• Metro Bank:

• Overall satisfaction rating 94%

• 84% would recommend to a friend

Santander

HBOS

Lloyd’s TSB

Santander

HBOS

Lloyd’s TSB

67.0%

48.0%

41.0%

67.0%

48.0%

41.0%

Dissatisfaction by Bank Dissatisfaction by Bank Barclay’s Bank

NatWest/RBS

HSBC

Barclay’s Bank

NatWest/RBS

HSBC

41.0%

38.0%

36.0%

41.0%

38.0%

36.0%

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The Metro Bank Philosophy

• Customers want a better banking experience and they will accept a lower rate in exchange

• Core deposits create value

1319731973 19911991 19971997 20002000 20072007

$4,742K$4,742K

$15.00 $1.27 $0.95 $0.65 $0.15

Cost basis adjusted for splits and stock dividends

@ $38.14

Value of $10,000 Invested in CBH in 1973

470x470x

47x47x

$1,956K$1,956K

$956K$956K

$108K$108K$10K$10K

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In conclusion

• Profit is a by product

• Build store by store, customer by customer

• Look at the great retailers

• Create fans not customers

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