Binckbank is an American company founded in the year 2000. It employs 560 people throughout the world and has about 300,000 account holders. In France, the Binckbank's subsidiary offers two services: securities account to invest in stock trades, and provision of bank accounts to take advantage of interest rate. In the website of Binckbank, (http://www.binck.fr/), the major outline of the bank's services is mentioned. Since the beginning of the financial crisis, one out of two people in France have changed their management of investment. Thus, they preferred financial transactions involving huge amount of money. Consequently, it can be seen as an opportunity for banks specialized in stock trade transactions because they can purchase cash stock which becomes easy to sell. Only 6% of non-stockholders and 14% of stockholders wanted to invest in stock trade because they saw an opportunity in it. In consequence, Binckbank must be comforting to reinstate confidence with people. However, the bank can be satisfied as it is located in a country which least affected by the current crisis. To catch attention of its target, Binckbank needs to differentiate itself from its competitors. The company does not communicate on its services or the ease of use but communicates essentially on price. Thus, with the lowest brokerage fees of the market and no custodian fees, Binckbank can catch the attention of young people who scan for the cheapest price to have the best profitability.
[...] In consequence, there are many regulations to insure the solvency of bank. $ Moreover, to open an account, there are some regulations to protect the customer and understand their expectations. In consequence, customers have 14 days to retract and must indicate their knowledge in trade market. Bank sector has many entry barriers: assets to insure solvency, regulations. Bank online have the same obligations. Binckbank incorporate in its contract some agreement essentials as irresponsibility for investments. Competitive Analysis, “the right benefits” To analyze competitors, we will use Porter five forces analysis in a first part. [...]
[...] Moreover, an ease of use can catch old people who are not accustomed to use Internet. - Secure transactions: customers research secure transaction because lots of time Internet is equated with fraud. In consequence, people want system to secure their trading orders. - Low brokerage fees: fees are one of the most important things in this market. Thus, to have the best profitability, people need to obtain low fees. In consequence, they take into account brokerage fees, and custodian fees to do their choice. [...]
[...] Recommendations I think that the strategy of Binckbank in France was the best. Thus, the company has known to identify opportunities of this market and imposing this last one. The company has seen that the main advantage was its low prices and use this competitive advantage to communicate. Currently, the number of account increases by 20% per year and it seems that the bank is a success in France. However, French are very attached to their bank and Binckbank should communicate a lot to be face to traditional bank. [...]
[...] - Its tariff is clear contrary to some other online banks. - However, some other online banks communicate more as Directbourse.com. - However, brokerage fees are not the lowest for all orders. To resume, Binckbank seems to be one of the best online bank in France however, it needs improve its communication and keeping its low brokerage fees that are its main competitive advantage. Face to traditional banks, Binckbank has the same difficulties than other online banks. Thus, it is less known, less solvent, and it does not have distribution channel. [...]
[...] • Social The social aspect is very important in France. French need social to be in confidence. Thus, Binckbank must take into account these parameters and create in its advertising campaign a relationship with customers. Moreover, bank online have a bad reputation because there are not relationship, so Binckbank must comfort its customers by showing that behind the screen there are human. • Cultural In France, finance is a taboo. Thus, stockholders has perceived as the creators of the financial crisis. [...]
Online readingwith our online reader
Content validatedby our reading committee