Cooperative bank, why so uncooperative?

I've always been a proponent of ethical banks, so as I planned to move to the UK, I decided to apply to the main ethical bank in the UK, "The Cooperative Bank".

I applied online and just opened the 2 letters they sent me to the UK address I specified. The two letters are from consecutive days.

The first one is hopeful, asking me for proofs of identity/residence:

 The next one, dating on the next day is less so, saying that "after careful consideration", they won't open an account for me.

This lack of cooperation has certainly annoyed me. It only exacerbates the typical "catch 22s" in the industry, where immigrating workers are supposed to provide one or more proofs of address in the UK before having a bank account, complicating the entry of skilled workers into the country.

Then again, I should not be surprised, as I had once before tried to switch to them in my Cambridge days, only to be told that they cannot create an account for me because my "name is too long".

For those entrepreneurs amongst you with an eye on the financial sector, this "service industry" lacks service so much that it's clearly ripe for disruption. Any bank that can provide decent service and ease the process of creating a bank account by accepting more foreigner-friendly proofs of legitimacy (e.g. proofs of address, bills and bank statements from their home country), would get a lot of business.