Pennsylvania Commerce Bank rebranded as
Metro Bank on 12 June, the latest stage in US banker Vernon Hill’s
plan to repeat the business hit he enjoyed with Commerce Bank.
Metro Bank has hit the ground running with ambitious plans as it
aims to build a new generation of ‘fans’, reports Douglas
Blakey.
Two years after the sale of Commerce Bank to Canada’s
Toronto-Dominion (TD) for $8.5 billion (see RBI 580), Commerce founder Vernon
Hill’s latest US banking venture, Pennsylvania Commerce Bank, has
opened the doors of its 33-strong branch network under the new
‘Metro Bank’ banner.
And Metro Bank, in which Hill is the largest
shareholder, has lost no time targeting success by focusing on
convenience, service, and fulfilling customer needs in an attempt
to repeat the highly successful Commerce Bank story.
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The rebranding was celebrated by extending its
already generous opening hours and introducing a new model of its
popular free coin-counting machine. Metro branches will be open
until 6pm instead of 5pm, Monday to Wednesday, to 8pm Thursday and
Friday while Saturday and Sunday branch times are 8am to 3pm and
11am to 4pm respectively.
The bank will also open on all holidays throughout
the year except New Year’s Day, Easter Sunday, Thanksgiving and
Christmas Day.
Last November, Hill told RBI: “We are
going to do it again. Metro Bank will be America’s next great
bank.”
The original Commerce, which prided itself on
being one of America’s most dynamic power retailers, talked not of
customers, but ‘fans’. The self-styled ‘America’s Most Convenient
Bank’ – a tag line now employed by TD Bank – also talked of
“reinventing retail banking” and of turning banking from “drudgery
into fun”.
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By GlobalDataAccording to Hill, Commerce was a retailing
concept and not a bank at all – arguing that the biggest danger
which faced Commerce was becoming burdened with the mindset of a
bank. “Every executive decision I made was designed to make the
customer experience better… How do I build more fans… not how do I
cut costs or how do I improve this quarter’s profit,” he told
RBI.
The customer service focus TD Bank inherited
from its Commerce franchise continues to pay dividends for its new
owners.
In the JD Power Satisfaction Index published
last month (see Measuring services like fiscal
performance, and RBI 613), TD Bank performed
strongly. It was the top-ranked bank in two US regions, including
the wealthy Mid-Atlantic, posting perfect scores in five of six
categories, including convenience, account statements and
transactions, and scored four out of five possible points for
fees.
A magic dog
Following the rebranding, customers visiting Metro branches
are now greeted by Mikey and his dog Magic, animated characters at
the bank’s new interactive Magic Money Machine.
The Magic Money Machine counts loose
change and prints a receipt, which can be exchanged for cash or
deposited into a customer’s account. There are two touch screens on
the machine, one for adults and a separate one for children at
“kids-eye-level”. Customers can also win prizes by correctly
guessing the amount of coins counted. According to Metro, taking
into account fees charged by other coin-counting services, the bank
saved consumers $2.2 million during 2008.
On the products side, the bank is offering
free checking, free Visa debit card, complimentary online banking
and 24/7 live customer service.
Further reminders of the old Commerce Bank are
immediately apparent on the Metro website. Community news features
prominently on the website as does a play area for children.
Indeed, the new bank logo has also been created to appeal to kids.
Out goes Commerce’s Mr C character and in comes Metroman, with
further cartoon characters planned.
And one Commerce tradition Metro will not be
dropping is its popular giveaway: red cherry-flavoured lollipops
survive at the new bank.
A further blast from the past is Metro’s
determination to build up its branch network. Commerce grew from
scratch in 1973 to over 400 units by the time TD closed the deal
and Hill remains convinced that the branch is the cornerstone of
any successful bank.
In November, Pennsylvania Commerce kicked off
its expansion drive by agreeing a deal to acquire the 12 branch
network of Philadelphia-based Republic First Bancorp in a tax-free,
all-stock transaction; the Republic First branches will rebrand to
Metro in the third quarter once the deal closes.
An aggressive branch expansion strategy
centred on Philadelphia, Southern New Jersey and Central
Pennsylvania, is already on the cards.
And while the majority of its peers endured a
painful 2008, Pennsylvania Commerce prospered.
For fiscal 2008, it reported net annual income
of $12.9 million, up 84 percent. While the three months to 31 March
witnessed a sharp drop in profits, the bank remained in profit,
posting net earnings of $0.84 million with net loans and deposits
up by 19 percent and 7 percent respectively.
