Principles of Financial Services Branding - American Marketing Association

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Principles of Financial Services Branding


	By Interbrand
	Interbrand was established in 1974 and is now the world's leading brand consultancy with 25 offices worldwide. Our Its disciplines include strategic consultancy, brand valuation, corporate and brand identity and market research.

	1. Introduction

Traditionally, branding is a concept associated with physical products and consumer packaged goods companies.

A quantum leap is occurring in the influence of brands in financial services.

Mega merger mania and global deregulation is driving the rise of global brands. Switzerland-based bank UBS AG now dwarfs its local competitors and London-based bank HSBC Holdings plc is re-branding all its global retail operations under one corporate brand.

In the UK, market shifts such as the increasing consumer interest in financial decision-making and the Internet as a channel, are forcing companies to invest in brand building exercises with consumers.

At the same time, powerful consumer brands such as Virgin and Sainsbury's in the UK have successfully launched financial services with no previous experience, but with loyal consumer relationships.

Branding is transforming the way financial services are communicated, just as surely as IT systems are transforming the way banks do their business -- and assisting new brands to set up banking without branches.

How is that transformation reflected in the way financial services companies are defining and managing their brands and their businesses for the future?

Interbrand conducted a survey designed to answer that question. We asked 24 financial institutions around the world how their principal customer brand is used and managed, both externally and internally.

The answers reinforce the increasingly held view that the brand is fast becoming the major competitive asset for financial services companies. But more importantly, the answers also show that the role of the brand within the management of business is changing dramatically and the way businesses operate is changing as a result.

Although some long-established banks and insurance companies still see their brand merely as an aid to awareness and recognition, the new entrants and those institutions that are radically transforming themselves put the brand at the center of their corporate strategy.

This means they are aligning all their communications, operations and systems to their brand mission and values. In addition, they are working to make all of their employees effective ambassadors for the brand.

These companies say that the brand symbolizes all that makes them different, so they are trying to ensure that their individuality is transmitted in all their activities. They are taking the same stance as Kenneth Chermault, Vice-Chairman of American Express, who said in a recent interview,

"While there are many directions a financial services company can go today, we will only do that which supports the growth of our brand."

In other industries it is well accepted that putting the brand at the center of corporate strategy is critical to success: BMW, Coca Cola and Tesco are good examples. Our survey indicates that some financial services companies now take that line and are working to make it happen.

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2001 MarketingPower.com Inc. Contents used by permission of Interbrand.

Table of Contents

1.	Introduction
2.	Emergence of Branding
3.	Four Branding Stages
4.	Conclusion