Commerce Bank

Executive Summary

Commerce Bank has been very successful creating a bank that focuses on their customer, employee and customer service.   This success can be contributed to the Commerce focusing on service, whereas their competitors focused on price.   Commerce who originally disrupted the banking industry is now facing increased competition due to their success from its competitors who have began to focus more on customer centric service and products. To stay ahead of its competition, Commerce is implementing a new program called, “Retailtainment” that will add additional customer service focus to their consumers. However, this program has faced several issues since implementation that could tarnish the reputation that has grown with their brand.


Commerce Bank was founded in 1973 by Vernon Hill, with $1.5 million who set out on a mission to build a bank different from its competitors by focusing on organic growth and customer service. Commerce Bank set out to differentiate itself from their competitors by offering extended business hours, friendly service, gifts, and creating an environment where customers are welcome to visit the branch. This transformed Commerce’s environment where consumers receive a retail experience instead of a banking experience.
By focusing on deposits, “Commerce was able to grow to $1 billion in deposits after 18 years and surpass that amount in quarters. Commerce expects to ultimately reach $100 billion in deposits and total 1,000 locations from Washington, D.C. to Boston” (Frei, 2006, p. 5). This growth can be contributed to their focus on clients who want service and convenience than just the highest rate. Their focus on the retail experience within their branches has led Commerce to disrupt the banking industry

Problem Statement

Commerce Bank has introduced a new program, “Retailtainment”, that was developed to increase the retail experience due to increased competition from banks, that are beginning to...