When it launched in 2010, the bank was the first new lender to open on the high street in 100 years. But now it's reportedly seeking to raise millions of pounds to boost its balance sheet.
With Metro Bank offering a range of products, from current accounts and savings to loans and mortgages, its customers are likely feeling nervous about the safety of their finances.
Here, Which? finds out what's happening to Metro Bank and explains how your money is protected should the worst happen.
What's happening to Metro Bank?
Metro Bank opened its first branch in the wake of the 2008 financial crisis with the aim of 'challenging' the big high street providers. Now the provider has 76 UK branches and 2.7 million customer accounts.
Urgent talks were held on Thursday (5 October) at the Bank of England’s Prudential Regulation Authority (PRA), with national media reporting the challenger was seeking to raise £600m to strengthen its finances. As a result, shares sank by 25%.
Any suggestion of a crisis, however, was downplayed by Metro Bank in a statement released this morning. It said it was exploring 'a range of options' but no decision had been made on the way forward.
It added that the bank continues to be profitable, is growing its customer numbers, and is 'well positioned for future growth'.
Find out more:Is my money safe with Metro Bank?
If you're a Metro Bank customer - or considering becoming one - you might be feeling jittery about the safety of your finances. That's despite assurances from the bank that there is nothing to fear.
It works like this: if a regulated financial firm is no longer trading and can't pay a customer's claim, FSCS can step in to pay compensation. It protects up to £85,000 of deposits per individual, per financial institution (not just per bank), and also covers mortgages, insurance and investments.
In some circumstances, you could be covered for more than £85,000. A measure to protect temporary high balances (THBs) - where you have money resulting from things like house sales, redundancy pay or inheritances - mean you'll be covered for some types of funds up to £1m for six months.
Find out more:How do you claim compensation from the FSCS?
Once that's all sorted, you'll need to fill in a claims application form. As well as questions about why you're claiming compensation, you'll be asked to upload scans of your supporting documents and sign the claim electronically before finally submitting it.
You'll be sent an email to confirm that your claim has been received, but you should keep your eyes peeled in case the FSCS gets in touch to request any further information or supporting documents.
When will you receive the compensation?
The timeline for the FSCS paying the money owed into your chosen bank account, will depend on the type of product you are claiming compensation for.
In the case of a bank, building society or credit union going bust, you should receive the lost deposits within seven days of making a claim. But it could be as soon as two or three days.
On the other hand, compensation for more complex products could take much longer.
For example, endowment claims, home finance and mortgage compensation typically take six months to come through. While straightforward insurance claims take at least three months.
undefinedsource https://www.which.co.uk/news/article/metro-bank-is-money-safe-aUYqa1V2JENE