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Commerce Bank

In: Business and Management

Submitted By 7series
Words 1571
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Executive Summary Commerce Bank was founded in 1973 and it was conceived with a very unusual approach towards the standards in the banking industry at that time. The bank opted to focus on customer relationship, providing a “retailer like” experience which enabled them to grow substantially in the following years with outstanding results among all its competitors. The strategy of Commerce Bank was intended to attract customers interested in characteristics such as convenience and service rather than high rates. In their products, they offered deposit or checking accounts with very low or inexistent fees on transactions such as money withdrawal in foreign automatic tellers (ATM’s) or no card replacement charge. Additionally and differently from all its competitors, their value was based on core deposits not in loans. Commerce Bank using this approach, as a result, was able to differentiate from its competitors through high quality service, rewards, awards, hospitality all wrapped up in a unique pleasant experience for customers and employees. This approach was so successful that many competitors have adopted some of the basic services offered by Commerce Bank, bringing the question whether or not, Commerce Bank should continue to engage in this type of differentiation and service oriented operations to stay ahead and continue to grow.

Company Overview Commerce Bank as we stated before, was founded in 1973 by Vernon Hill, a part-owner of 45 Burger Kings in the Philadelphia suburbs, who perceived the banking industry in a very unusual way. He thought that by operating a bank as a retailer more than as a bank would be a more tempting option to customers, therefore making a significant difference from the usual standard banking. "Hill sought to bring fast food convenience to banking and expanded Commerce from one location to over 435 in thirty-three…...

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