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.
[...] Thus, its services catch people younger with less money and researching to make profit quickly. In consequence, Binckbank has developed a communication base on price. This bank has the lowest prices for brokerage fees. Thus, the price is the best competitive advantage to catch this specific target. Thus, this target has less money and research best brokerage fees to have the best profitability. In consequence, they research a bank with the best price. Currently, Binckbank has the lowest price and is easy to use. [...]
[...] Conclusion To tap the French market, Binckbank has used three steps. In a first time, the company has analyzed opportunities in French market: it saw high brokerage fees and a high demand for small investors. In consequence, the target chosen was people between 30 years old and 65 years old with high education and low money to invest. In the same time, the bank analyzed the environment and competitors. It saw that its main competitive advantage was its low prices. [...]
[...] - However, Binckbank is less knew than traditional banks. - However, Binckbank does not purpose traditional account contrary to traditional banks. - However, traditional banks are more solvent than Binckbank and they are more diversified. - However, traditional banks have more money to communicate. Binckbank has not only traditional banks as competitors but also other online banks as Boursier.com, Directbourse.com. What are advantages and disadvantages face to others online banks?: - Binckbank has the lowest brokerage fees of online banks. [...]
[...] To resume, the strategy of Binckbank is based on price. The bank target young people with little money but want to invest in stock trade. In consequence, to have the best profitability, the fees are important. Thus, Binckbank is the cheapest bank online: the brokerage fees are the lowest and there are not custodian fees. Finally, Binckbank want to have a dynamic image. In this goal, the bank uses the bright green that is a color dynamic and young. This last one is particularly adapted to catch young people and dynamic people who research “renewal” and the best service to have the best profitability. [...]
[...] - Accumulation phase: people work and save their income between 45 years old and 70 years old. - Decapitalization phase: people pass their financial assets to their descendants before 70 years old. In consequence, Binckbank seems to target people between 45 years old and 70 years old who are in the accumulation phase and earn a high income. However, banks online are adapted for people who use Internet. Moreover, the low price is a better argument for people who are not much money to invest. [...]
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