Combank

Extra service features: coffee and newspapers, weekend and evening hours Industry analysis: Banking Banks offer deposit and loan products (commodities) Two trends: increase the number of products each customer used, growing revenues from fees Service: Customer satisfaction with the banking industry had historically been quite low 34 % of customers left because of dissatisfaction with steep fees and fee surprises, poor service and errors Distribution: customers often chose bank by proximity of a local branch Large ATM networks, profit center instead of cost centers (fee income) Internet banking trends Many banks encouraged (or force) customers to move to low cost self-service channels (or give penalties) Customers seen as cost centers rather than profit centers Employees: often selected for their ability to perform repeated tasks. Measures of performance: volume of calls handled, number of transactions processed. Not customer satisfaction The Commerce story Determined to be different “not another me-too bank” differentiate from other players 7:30AM-8:00PM and modified weekend hours in busy branches as late as midnight outgoing, friendly service free gift when you open the account Trend of pushing customers online Customer as a cost instead of revenue generator Commerce has highest deposit-rate growth, high online usage 34% “the best of every channel knowing that you are going to use all of them” Grow organically “The merger of cultures and the dilution of brand is a formula for failure” Deposit base the value of a bank (not loan base) Commerce’s consumer business unusual (50 % compared to 30 % in other banks) “a low expense ratio is a minus, not a plus” a branch network with longer hours invetiably has higher costs, which shows up in the expense ratio of a bank “the guys with low expense ratio are every day disinvesting in their business” committed to investing in providing service in his branches after asking customers what they wanted give back to customers,...