The former co-founder and chairman of Metro Bank, Anthony Thompson, has stated that the bank’s future is “very, very limited” if it continues to focus on High Street branches. The statement comes after the bank publicly announced a deal to raise funds to secure its future. However, Thompson believes that the strategy is flawed and that “branch-based strategy given its financial position gave Metro ‘a very, very limited future'”. Thompson, who went on to set up Atom Bank – an internet-only company with no physical branches – said he wouldn’t like to be in the role of Metro Bank’s chairman or CEO today.
Despite this, Metro Bank remains committed to opening 11 new stores in the north of England by 2025. Analysts have pointed out that branches are costly and counterproductive to the trend of consumers turning to online banking. Founded in the wake of the financial crisis in 2010, Metro Bank’s promise to stay open seven days a week proved popular as it positioned itself as a “challenger” bank to the big names on the High Street. The bank made a successful start before facing a scandal in 2010 that caused top executives to resign, including Thompson himself.
The scandal has continued to affect Metro Bank’s performance, and it had recently asked regulators to release the amount of money needed to cover its mortgage lending in the hope of freeing up funds to invest in growing its business. Regulators declined the request last month, reducing Metro Bank’s share prices by approximately 20%. Last week, the bank’s share price fell further following rumours that the bank was seeking investors to raise money.
Colombian billionaire, Jaime Gilinski Bacal and his firm, Spaldy Investments, have now invested £102m into Metro Bank. Under the deal, Bacal secured a 53% stake, making him the bank’s controlling shareholder. Despite starting the week on Monday with a rebound on the share price thanks to the deal, Metro Bank’s stock has fallen to below half its value at the beginning of this year, dropping to trade at approximately 55p.
Bacal is a well-known figure in Colombia, having built a reputation for himself and his business empire through purchasing several banks both domestic and overseas. Following a US education, Bacal took his family group into purchasing banks before building relationships with Colombia’s political and business elite over the years and avoiding negative targeting from more recent and left-wing figures such as President Gustavo Petro
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