Of course, there have been new banks since then but, certainly in the last decade or so, they've all been online offerings - think Egg, Cahoot, Smile. That's all changed today with the launch of Metro Bank.
The arrival of this new player in the market has been much-hyped and Metro Bank itself claims that its launch marks the beginning of a revolution in the UK banking industry - but will it?
Apathy or lack of alternatives?
Here in the UK we have one of the most competitive banking systems in world but it is dominated by consumer apathy.
Around 70% of us have never switched our current account; we are missing out on £9.4billion in extra interest because our savings are sitting in poor-paying accounts and we're failing to take advantage of the best deals on the market; and we're paying far more than we need in interest on our borrowings.
Metro Bank claims the main reason for this is that British consumers don't believe that there is an attractive enough alternative to their existing bank. Our banking industry is dominated by four main players - Barclays, HSBC, Lloyds Banking Group and Royal Bank of Scotland/NatWest. And Metro Bank says that our decisions in such matters are based on far more than just getting the best deal. As a result, service is at the core of Metro Bank's proposition.
So its branches, or stores as it prefers to call them, will be open seven days a week. You'll be able to walk into a store, apply for an account and have your application processed within 15 minutes. And if you lose your credit or debit card, you can go into the store and have a replacement printed while you wait. You can take a look inside the new store in our video 'Changing face of UK banking'.
However, while this all sounds great, and it is definitely good news to see a new player come into the market, I'm not convinced it's going to result in the revolution Metro Bank is predicting.
Metro Bank has got a tough job on its hands if it is to succeed in establishing itself as a significant player in the UK market and there are question marks over whether its existing strategy will be enough.
Market-leading service, not rates
Prior to launch, Metro Bank stated categorically that it wasn't going to come in with market-leading rates and that its service proposition would be enough.
However, while good customer service is undoubtedly important when it comes to financial products, so too is rate. With so many people loathed to switch accounts, one of the key 'push' factors is the rate of interest. Why else would savings providers be having to offer rates five, six, seven, even eight times more than the Bank of England base rate (currently 0.50%) in their bid to attract new custom?
Against this backdrop, it seems strange in many ways that Metro Bank hasn't come out with at least one really competitive product that makes people feel compelled to apply.
None of its deals are totally uncompetitive. In fact, it stacks up quite well against the rest of the market: it doesn't pay interest on current account balances in credit, but then again neither do Barclays, NatWest or HSBC, and its overdraft rate, at 15%, is more competitive than average.
At 2.50%, Metro Bank's one-year fixed rate bond is ok. But there are much better rates available. Nothing really stands out.
Its credit card is probably the most attractive product. It offers an annual percentage rate of 13% - lower than the average which is about 18% - and it doesn't charge any fees on balance transfers, overseas' usage or cash withdrawals. This is a good deal for use abroad.
But herein lies the other problem with Metro Bank's proposition: while you can manage your accounts online or over the phone, applications can only be made in store. Given that, for the foreseeable future, its only stores will be in London, a huge number of people won't be able to apply for one of its products even if they want to. And let's not forget, in every case there are alternatives, which as far as rates are concerned, are as good, if not better.
Take the credit card for example: Metro Bank's is a great card if you're going abroad. But it's very similar to the Halifax Clarity Card (which has a typical APR of 12.9% and no fees). Therefore, unless you happen to be near a Metro Bank store, why would you go out of your way to apply for its credit card when you could go online and apply for Halifax's?
You can read more about the rates and how they compare to the market-leaders in our article 'Metro Bank: new bank on the high street'.
Is it revolutionary?
While it is great to see a new player in UK banking, Metro Bank's service-led proposition alone is unlikely to result in a revolution. That said, if its presence serves as a wake up call to consumers, it could help kick-start the switching market.
If you are one of the millions of people who knows you could be getting a better deal on your savings, current account, credit card, mortgage or loan then it's time to take action. Whether it's the most competitive rate of interest, highest quality service, or a mixture of the two, there's something out there for you.
Please note: Any rates or deals mentioned in this article were available at the time of writing. Click on a highlighted product and apply direct.
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