Banking on the Brand
"Shining
a light creates shadows” ― Michael Lewis, Flash Boys
The banking sector in the region is developing and facing multiple
challenges and many opportunities at the same time. From growing customers’
expectations to the macroeconomic and technological context, change is
affecting everything. Yet, the safest bet for banks remains unchanged and it is
to build their brands.
Banking on the Brand is a strategic decision that can be implemented by
addressing 4 key areas that will need the organization’s continuous attention
and dedication:
Renewal, Reputation,
Relationship, and
Results
Renewal
Facing constant change, banks need to put Renewal at the heart of their
strategy and practice as this is the only way to keep up with changing markets
and changing moods. In other terms, Renewal means a continuous drive to keep up
with the latest trends to always offer better solutions.
The Renewal strategy does not only cover innovation in products and
services but also a genuine renewal in the culture and attitude of the organization
and its personnel. To mark major Renewal efforts, a refreshed identity or
eventually a branding exercise can be considered only when necessary and
required.
The Renewal efforts undertaken by banking institutions will lead to a
systematic adoption of new technologies and tools and a continuous adaptation and
improvement of products and services to match social and technological
advancement.
Currently, banks are heavily focused on the digitization of their channels
to improve efficiencies and customer satisfaction. From this perspective, Renewal
needs a considerable investment in hardware, software and especially in people
with the right profile and mindset who can embrace innovation and improve the brand
image and competitive advantage.
From their side, customers expect their bank to adopt the latest
technology and offer secure and easy to use services; but will be disappointed
when faced with halfhearted innovations and low-grade products. For instance,
when a bank is not ready yet to integrate a certain technology in its services
it is better to wait and come up with a solid solution rather than offering
inferior services that can bring more damage than satisfaction. If the bank is
not ready to offer NFC (near field communication) enabled SIM cards, offering
an NFC patch or sticker might look odd compared to the competition.
When it comes to the technology aspect of the Renewal strategy we have to
admit that some markets are ahead of others in adopting and implementing the
latest technologies in banking. Therefore, what is the “latest incredible innovation”
in a certain market is a several years old service in another market in the
same region. Some humility and respect to the customer mind will pay off in
these situations.
Moreover, market segmentations and diversification of products and
services to better address the needs of specific customer groups will also fall
under the brand Renewal strategy. Different customer groups will appreciate
different services and banking channels.
The brand Renewal and innovation effort is an ongoing battle for
excellence and higher customer satisfaction in the banking sector. This is also
an area of great opportunity for the most visionary brands to excel and
differentiate themselves from the competition to further build their image and
reputation.
Reputation
Reputation has always been a key competitive advantage in the banking
sector. Nowadays, it is taking a different and more complex dimension; in other
words, Reputation is the spirit of the brand.
Like brand value, Reputation in the digital and social media world is far
from being controlled by the brand owners. Reputation is owned by the market
and subject to change positively or negatively with every marketing activity,
transaction and interaction with the bank. Reputation can also be affected by public
mood, nurtured by some media and opinion leaders who sometimes disagree with the
growing influence and wealth of the banks.
Reputation is heavily affected by the bank’s communication campaigns and
re-branding efforts. Therefore, any communication activity should be well
planned and strategically aligned. For the same reason, any branding or re-branding
of the bank should have a solid base.
Relationship
Satisfying customers and retaining their loyalty for a long period of time
is a real challenge for banks in the current context. Customers are becoming more
open for exploration and change in all categories including banking; and the saying
that customers do not change banks is becoming just a myth.
Customers are more informed, demanding and especially sensitive to the
idea of being under-serviced by some corporations and brands. Therefore,
building a true relationship with the customers of today is a demanding task
that would involve the full package of brand touch points. From the brand
values and commitments to the daily interactions with employee and digital
services, the Relationship with the bank is being built and tested every single
minute.
Building a solid and lasting Relationship should not be any more just a
personal initiative from the employees or branch managers; it has to be an
intrinsic part of the brand strategy and the operational guidelines of the
bank.
A true personal experience can demonstrate how easy it is to damage long customer
Relationships. I have an account with an international bank that is much known
across the region and I have been their customer for more than 15 years with a good
satisfaction level in general. Last summer, my wife’s purse was stolen and we
immediately tried to stop the credit cards including the one from the bank in
question. With local banks, the process was smooth and quick, but contacting
the call center of the international bank in question was a complicated and
frustrating process that took more than an hour. By that time, the thief
managed to use the credit card at a big name showroom (apparently he has a
taste for expensive smartphones...) When we contacted the bank to file a claim,
the bank refused to take any responsibility. You can imagine the level of
disappointment with this particular bank and the learning that we can draw from
this true story. Building a Relationship is a serious endeavor that covers all
the points of interaction with customers and around the hour. Even if that bank
had the best online banking in town and a top notch personal service, their useless
and retarded call center made them loose the Relationship battle.
Building a strong Relationship with customers also relies heavily on the
physical presence of the bank through its network of branches, ATM machines and
eventually kiosks in malls and other selected locations. This is a serious
investment. It is true that digital services are reducing the need for direct interaction
with the bank, but presence and proximity to customers continue to be an important
factor in building and maintaining the Relationship.
Results
Customers (both individual and corporate), and all other stakeholders
expect and demand Results. Therefore, in a well-managed banking organization
all the previously mentioned strategic areas should work in sync to deliver
Results.
Results are not limited to income and benefits. Stability, continuity,
security and satisfaction delivered to all stakeholders are important Results.
We can mention two quick examples to elaborate on the Results strategy
from banking perspective: one tangible and the other intangible.
A bank that consistently offers lower interest rates to saving accounts
compared to other banks of the same size and stature is a bank that is low on
Results in the eyes of customers even if it is delivering better Results for
shareholders.
A bank that has low levels of customer satisfaction will be scoring low
when it comes to Results considering the cost of losing customers and
attracting new ones instead of having a smooth and steady relationship for a
long time.
The above mentioned 4 strategic areas will need ongoing improvement and
evaluation in order to build a solid and attractive banking brand that can
create value to all stakeholders and stand in the face of fast change and fierce
competition.
In the online and social media time, banking services would need to become
much more easy to use, probably as simple as using any application but with a
security fit for the digital age.
Let the best banking brands shine.
Jean-Claude Saade
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