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 i n Sto r e a t CHAPTER 2
Wh a t’s
qu a B a n k :
Um p
e r B e h a v io r
Consu m A Case Study Report
Presented to Mrs. Marilou Vera

Case Instructor in MKT 102: Consumer

Behavior
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 I. EXECUTIVE SUMMARY
Overview
Umpqua Bank is one of the few banks in America that is reinventing how business is done in their
banks. World over where bank branches are shrinking, Umpqua is expanding. However, they do so
with a twist. Their bank branches are a work of art, where service is exemplary, and the experience is
uniquely knitted around the community they operate within. It is anything but a regular bank.

Each store is a “community hub” where people can spend a few minutes sipping
Umpqua-brand coffee, listening to local music selected by Umpqua, or surfing the Web using
Umpqua’s free Wi-Fi Internet access. As one Umpqua executive notes: “Kids have come back to the
store to try to repay their loan, but we encourage them to open a savings account.” Top-notch service is
another Umpqua hallmark and competitive point of differentiation. The Innovation Lab in Portland,
Oregon, is Umpqua’s latest innovation. The Innovation Lab is both people friendly and efficient.
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 II. Statement of the Problem
This study focused on the “The Maintaining and Improving things in Umpqua
bank”. Therefore, this study sought to answer the following questions:

1. How does Umpqua Bank maintain their credit quality?

2. What are the things Umpqua Bank should do to improve

its declining loans?

3. How does the Umpqua Bank respond to the allegation of

being an old-fashioned bank?
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 e v i ew a n d
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er m i n y i n
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the relatio
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d B r a n d loyalty
a n
 III. Causes of the Problem
The following issues are being evaluated in order to provide a comprehensive
analysis:

1. How does Umpqua Bank maintain their credit quality?

Banks will be required to retain greater capital under Bassel III. It
will impose requirements on banks for both the quality and quantity
of capital. This means that banks will need to maintain Tier 1
common capital ratios in order to withstand loan losses. Tier 1
capital will be increased from 6% to 10.5 percent (Morningstar
Equity Research, 2011).
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 2. What are the things Umpqua Bank should do to improve its
declining loans?
To extend its customer base, the bank has to expand and acquire
businesses in other parts of the country and internationally.
Currently, its expansion strategy focuses on acquiring businesses in
markets where it already has a significant presence, such as Seattle,
California, and
Oregon. Seattle Evergreen Bank was the most recent of its three
purchases in this sector. This implies that its approach is solely
focused on defending its customer base, with other markets being
ignored.
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 3. How does the Umpqua Bank respond to the allegation of being
an old-fashioned bank?
For decades, Umpqua Bank has had an enviable reputation in retail
banking. Bankers from all over the world traveled to visit its distinctive
"stores" and mingle with the community bank's leaders. They recognize
that they will not be able to maintain their position if they do not change.
Consumers today simply do not visit branches as frequently as they did
even a decade ago, no matter how innovative its stores are — offering
fresh coffee, yoga classes, and striking designs. The urge to "humanize"
digital banking technologies is becoming more common in fintech circles.
Some would argue that making banking technology more human entails
using powerful artificial intelligence to make digital assistants more
likeable.
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 IV. Decision, Criteria, and Alternative
Solutions
This the three (3) alternatives solutions for the customer experience drive the
company growth:

 Hiring the smile

Pros
• Seamless Transitions. Transitions can be a challenge when you're
bringing a person into a job.
• Proven Fit and Loyalty.

Cons
• Negative Emotions of Other Workers. ...
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• Same Skill Set.

  Empowerment as an essence of the culture

Pros
• Faster problem solving
• Increased morale and productivity
• Greater involvement leads to greater commitment
• Lower levels of management stress
• Improved staff retention

Cons
• Lack of experience increases risk
• Potential for decreased efficiency
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• Blurred relationships
• Poor decision-making
  Involving every employee in improvement

Pros
• Greater Employee Commitment
• More and Better Ideas
• Increased Productivity

Cons
• Manager-Employee Boundary
• Communication Complexity
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 V. Recommended Solution, Implementation
and Justification
 Each store is a "community hub" where people can spend time sipping coffee,
listening to music, or surfing the Internet with free Wi-Fi access.

 As one Umpqua executive notes: “Kids have come back to the store to try to
repay their loan, but we encourage them to open a savings account.”

 Top-notch service is another Umpqua hallmark and competitive point of differentiation.

Emphasizing its service helps the bank build long-term relationships by connecting with
customers on a more personal level.
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  Working with technology leaders such as Intel, Microsoft, and Cisco, Umpqua has
created this cutting-edge store as a testing ground for new ideas.

 The Innovation Lab is both people friendly and efficient. Umpqua is studying the
ways that customers react to these and other innovations with an eye toward
launching the most successful new ideas in its other stores.

 “We provide a very clear alternative to the traditional banking experience,” Davis
states. “It’s fun, interesting, entertaining, exciting. It’s like going to Disney
World.”
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 Theoretical Analysis Frame
To ensure success, it is recommended that Umpqua Bank follows the
suggested model below to ensure that they significantly improved their overall
brand management particularly building up Brand loyalty among their customers,
without losing a large part of their uniqueness, independence and management
control.
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 VI. External Sourcing

Textbook
• Hoyer, W.D. and MacInnis, D.J. (2008) Consumer Behavior, Fifth Edition. South
Western, a part of Cengage Learning. pp. 67-68.

URL
• https://tinyurl.com/faisalkhan-umpquabank
• Customer Service Secrets Of Umpqua Bank, aka Retail Banking's 'World's Greatest
Bank' (forbes.com)
• https://tinyurl.com/thefinancialbrand
• https://tinyurl.com/umpqua-bank-analysis
• https://tinyurl.com/Theoretical-bank-frame
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 YOU!
THANK
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