Lexi (Yujia) Zhang COMM 491 Section 201 Should Coast Capital Savings Go National Headquartered in Surrey, Coast Capital Savings is a young credit union that provided financial services to people in British Colombia. Like most financial institutes, Coast Capital Savings offers products that are not surprising: retail services such as simple banking services, financial investment services, and personal lending as well as business services. Although it faces a limited customer base, it has now grown to be the largest credit union in Canada. As this local credit union continues to expand, it is now deciding whether to register as a federal credit union and to go national. Generally speaking, Coast Capital Savings falls under the credit union industry. Credit …show more content…
For example, Coast Capital Savings offers "Free Chequing, Free Debit and More Account”. This type of account requires no monthly fee with no minimum balance required. It is especially attractive to younger customers such as students. `This population is sensitive to banking fees so that they can relatively easy won over by this free account. Another competitive advantage that Coast Capital Savings carries is differentiation. Unlike traditional brick-and-motor bank building, redecorated retail stores of Coast Capital Savings provide an “open and accessible, customer-owned space” (CCS). Since this store design creates a close atmosphere, older people will prefer coming into the store to have an experience that offers more than transaction processing services. The key purpose of differentiation is to attract loyal customers, who are less sensitive to price so that it can extract a larger profit margin. What’s more, Coast Capital Savings’ no fee account is also a way to differentiate itself. As major Banks do not offer such free account, Coast Capital Savings offers a unique product to attract a certain market