US-based Metro Bank has just opened its first branch in Holborn, London.  The High Street debut is the UK’s first new bank for a century.  It plans to open 200 branches or ‘stores’ in the Greater London area within 10 years.

Virgin Money, Tesco Bank and a new concept – dubbed Project New Bank – are also hot on its heels.  Virgin Money will open branches in H1 2011 with plans for a 70-branch ‘Virgin Bank’ network.  Project New Bank, led by two industry heavyweights, will prioritise its strong online strategy as well.

So, will these young pretenders shake-up the stalwarts of High Street banking with their own innovative vision?  Is this what the jaded retail banking sector needs or are customers looking for a multi-channel customer service experience?

The first signs are the Metro Bank views its customers through the prism of the branch.  The bank’s philosophy is ‘fun’ and it hopes to revolutionise the customer experience.  It is on the offensive and will open seven days per week from 8am to 8pm on weekdays.

There’s also a five-year deal with Mastercard and promises of a 15-minute decision for over-the-counter payment card applications.  However, analysts don’t think that Metro Bank will be topping any Best Buy tables anytime soon with uncompetitive rates.

In the past week, 75% of online mentions have been on social media.  So far the response has been lukewarm with some criticism of the bank’s online services and cynicism that customers will bother to switch accounts.  There was also a mixed response to the promise of a 15-minute credit and debit card service, a good move for some, but there are also concerns over security.  (MoneySavingExpert 29/7)

If you are not a Londoner then the launch of Metro Bank may be neither here nor there to you.  But there is a wider debate opening up on the future of retail banking, in terms of the competitive landscape and whether the time has come for banks and building societies to really look beyond bricks and mortar.

Brett King on Finextra (19/7) suggested: ‘P&L support for mobile, social media, internet and other such elements of the customer experience is still woefully inadequate because their real-estate based big brother still takes the absolute lions share of $$$’.  But, is the demand there anyway or do customers just want to keep their money securely under the High Street mattress and talk to real people in the branch?