October 02, 2007

Signs of banking things to come

Reasons to leave the banking system NOW

Commerce Bank: A Cool Culture Reduced to a 'Footprint'

Posted by Christopher Stevenson

I'm feeling a bit blue today. Why? When I woke up this morning, the first thing I read on my Google home page was that Commerce Bancorp is being acquired by Toronto-Dominion Bank (TD). It shouldn't really bother me; heck, there isn't even a Commerce Bank in Wisconsin. And I should have expected it, since former CEO Vernon Hill's indiscretions came to light. Nevertheless, it's hanging over my day the way the stench of sweaty kids and old fries looms in a McDonald's PlayPlace. But, why should I care?

Commerce20bank20logo_2

I like the Commerce Bank model. Commerce is one of the few financial institutions that has broken through the white noise of financial services. They've made a name for themselves, not because of their guaranteed low rates (their rates stink) or their ability to serve all people (they advertise their crummy rates to help folks who are looking for good rates "opt-out" of their services), but because of their service culture.

They've built a culture around making banking a retail experience, calling their branches "stores." They set the standard for longer hours and their staff is cheerful (one of their hiring standards is that new hires must smile in a resting state). And they've been the focus of a Harvard Business School case study and included in Bill Taylor and Polly LaBarre's Mavericks at Work. Not many FIs can claim the amount of positive press that Commerce has earned. It's a model I wish CUs had figured out first (minus the crooked CEO, of course).

The question lingers: Will Commerce Bank lose its identity in this acquisition? It seems to me that TD would be foolish to mess with success, but you never know. How much tolerance will TD have for the radical step-child? Will Commerce become just another mediocre player? Could be.

When I read the press release, I saw nothing about Commerce's unique culture or strategy. What I saw was this:

"The combination of Commerce with TD Banknorth doubles the scale of our U.S. banking business and accelerates our transformation to a leading North American financial institution," said Ed Clark, President and Chief Executive Officer, TD Bank Financial Group. "Commerce brings an impressive geographic footprint and market share in a contiguous region and a complementary North American retail banking business model."

Size. Footprint. Market share. Doesn't seem like TD has much interest in Commerce for what made Commerce great, does it? Well, on the bright side, if Commerce goes mediocre, it's one less player standing in credit unions' way.

Hmm, my day just got a little brighter.




From the comments section:

I have worked in the banking industry for my entire career and been with several large players. Commerce by far exceeds the standard of customer service and on-line banking. They are marketing geniuses! It would be sad to see the retail bank lose this edge in the marketplace. Yes, they have the edge - the long hours and the public smiles - but it's all smoke and mirrors!

As a Commerce Bank employee I can tell you that this is the best thing that could have ever happened and I am hoping that while we are successful (despite the crooked CEO)! The employees are meaningless zombies who are forced to promote a "Wow" culture to the public eye and fear if they don't comply it would mean their livelihood. Ask any employee who experiences this environment each day. As an officer of the bank, I am expected to "buy-in" to the antics, chants, WOW themed music, RED Fridays, Mr. C mascot and activities to the point of personal humiliation. Everyone is expected to "drink the koolaid" and get on board or get out. They thrive on promoting their culture as a cult and are proud of it. Most employees are scared and will go along with the crap until they can move on. Most days are spent obsessing about how Shirley Hill, Vernon's wife, would behave if she saw something out of place or under a desk - her control over the environment was outrageous. It is all about appearances. Her prize building designs and they way they looked to the public were all that mattered. They are staffed with truly bad management and inexperience... change is good if it means changing the way the employees are treated.

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