Metro Bank is the first new bank to hit the high street in over 15 years at the end of July, yet research has shown only 38% of us would consider moving to a new bank.
Tesco Bank, Walton & Co and Virgin Money are close to follow suit terming the venture Project New Bank. The Project is reported to be preparing a bid for 6 Lloyds branches and aims to suit customer work and home life timetables with more suitable opening hours and quicker money transfers. Although 57% of customers surveyed in the Uswitch.com research said they were looking forward to having a real alternative to existing banks, over a third thought new entrants would not be as established or secure making a move more risky. However 51% think a new banks offer a fresh start with 57% viewing the current UK banking industry in a dim light and a massive 66% of critics blaming existing banks for the financial crisis. "Competition is certainly hotting up, but taking on the banking big boys won't be a walk in the park, said uSwitch.coms personal finance expert Dilshad Issa. "But while consumers are cautious they also like the idea of the competition that new banks will bring. Initially, they might not want to move their main current account to one, but they will test the water with savings accounts and credit cards so there is still everything to play for.
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This news comes after most existing high street banks have been shaking up their own mortgage deals like Leeds reduced fixed 4.89% for fixed fee buy to let 5-year fixed rate mortgage deal.
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