Case | HBS Case Collection | December 2002 (Revised October 2006)

Commerce Bank

by Frances X. Frei and Corey B. Hajim


Commerce Bank has become one of the fastest growing banks in the country, despite having defied conventional wisdom about how to grow deposits. Banks historically have grown either by competing on deposit rates or through acquisitions that expand their deposit base. Commerce has the lowest deposit rates in each of the local markets it serves and has acquired no other banks, yet its growth rate is unparalleled. Its secret? Commerce differentiates itself on service. Explores the highly refined service model that guides the design of its operations and service features and considers the trade-offs involved in competing on service.

Keywords: Business Model; Design; Growth and Development Strategy; Service Operations; Competition; Banking Industry;


Frei, Frances X., and Corey B. Hajim. "Commerce Bank." Harvard Business School Case 603-080, December 2002. (Revised October 2006.)