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GOOD MONTH | BAD MONTH
Good month for... UK challenger, Metro Bank, has surpassed one
million customer accounts, seven years on from launch. Craig Donaldson, CEO, says: “Less than seven years in, we’re proving that UK banking is ripe for disruption and showing just what can be done with the right model and culture. Our success is testament to the fact that people want choice, and we’re seeing more customers than ever vote with their feet and join the revolution, demonstrating that the integration of stores and digital is a winning combination. Bring on the next million.”
The bank listed on the London Stock Exchange in March 2016, achieved profitability in the second half of 2016 and expects to see its first full year of profitability in 2017. Unlike many of its fellow challengers, it has a branch network and has opened 48 ‘stores’, with up to 10 more planned over the course of the year.
Bad month for... Barclays has tightened its security measures after a prankster impersonated its Chairman and entered
correspondence with CEO Jes Staley. Staley replied to an email from John McFarlane. In fact, the recipient was a disgruntled Barclays customer using the address
john.mcfarlane.barclays@
gmail.com. Staley reportedly showered the prankster with praise when he received a message of support. He has been criticised for trying to unmask a whistle- blower at the bank, an action that led McFarlane to spent much of his time at an annual meeting defending the decision not to fire him. “You are a unique man, Mr McFarlane. You came to my defence today with a courage not seen in many people. How do I thank you?” wrote Staley. “You mix humour with grit. Thank you, John. Never underestimate my recognition of your support. And my respect for your guile.”
The anti-cash lobby… Cash use is declining, but the number of UK banknotes in circulation is at its highest for
a decade, says the Bank of England. During 2016, growth in the value of Bank of England notes was 10%, double its average growth rate over the past decade.
“There were some one-off contributing factors, such as the depreciation in the pound leading to a spike in demand for £50s, and a jump in the £5 growth rate as a result of the introduction of the new polymer notes given paper notes will take time to be returned,” says Cordelia Kafetz, who works in the Bank’s Note Operations Division. “Controlling for these events, by substituting in their 2015 growth rates, notes in circulation grew by 8%, the highest rate for over 10 years. One factor driving this is low interest rates incentivising increased hoarding, so notes remain in wallets and the retail sector for longer.”
In 2015, cash accounted for less than half of consumer payments (volume) for the first time. This paradox of falling
www.ibsintelligence.com © IBS Intelligence 2017
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