The Name Game: If You've Thought about Changing or Modifying Your Bank's Name, Here Are Some Points to Consider
2005; American Bankers Association; Volume: 97; Issue: 9 Linguagem: Inglês
ISSN
0194-5947
Autores Tópico(s)Banking Systems and Strategies
ResumoNot too long ago, a bank's organizational identity was often a matter of geography, with many U.S. towns and cities boasting their own locally owned and managed First National, Citizens, or Peoples Bank. While this is still the case in many areas, much has changed regarding name conventions. Given changing geographic boundaries and revised product and service mixes, bankers are asking themselves, What's in a name? Is its power to influence overstated or underutilized? Do circumstances warrant a new approach? And will management support a commitment to change? While bank name changes and re-branding efforts are nothing new--see Gallery of on p. 76--it appears that contemporary efforts are more strategic in focus. Rationale is varied, and ranges from mergers and/or inability to utilize existing names in expanded markets to diversification and differentiation, among other factors. While some are challenged to seek a new name, others face the daunting task of choosing between two highly visible, branded entities. While each name change, branding or re-branding situation is unique, commonalities of purpose appear to exist among banking companies of all sizes. New name or brand strategy? some merger situations, the acquiring bank's name may not be available for use in a particular market or it may, not be an appropriate fit for the broader, combined customer base, says Bob Chandler, chairman and CEO of Memphis-based Chandler Ehrlich, a marketing communications agency. the case of a bank that has expanded its scope of services, an existing name may be self-limiting for the company's plan of growth. In other situations, a bank may be seeking to differentiate its business as it appeals, for example, to specific professional groups. NewGround president Kevin Blair concurs, citing elements of his experience with community banks. He says that while there are many different strategic reasons that community banks are changing their name and brand identities, a dominant factor is the need for differentiation. addition, banks are becoming more brand focused with greater awareness on how important a clear brand strategy is for their long-term success. While a bank's name should create an identity that separates it from competitors, it should also begin the establishment of the bank's brand promise, according to Blair. Experts stress that consideration of a name change and/or a subsequent re-branding effort shouldn't be feared, but it shouldn't be taken lightly either. The initiative, they say, requires strong planning, research, and strong internal and external communication upon approval. First, a bank needs to map out a very clear long-range brand strategy that defines their goals and vision for the Blair states. This strategy should clearly answer several essential questions such as who are they, what do they stand for, where do they want to be in ten years, who are their most profitable customers, and what do they excel at in terms of unique product/service offering. As far as research is concerned, Blair asserts that banks should be studying their market demographics, as well as habits of desired customer segments in relation to the brand position. Before any name change is implemented, he states that banks should test their brand strategy conclusions with customers and non-customers. Fred Landiss, senior vice-president and director of marketing at Clarksville, Tenn.-based F&M Bank, agrees that thorough research is critical to any effort. The $480-million-asset bank, which shortened its name from Farmers & Merchants, says that his bank's research revealed that among younger consumers, the bank's former name just didn't conjure up images of online banking or online bill pay. When research showed that some other proposed names sparked merger associations, the bank opted for F&M, which was easily recognizable and tested well. …
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