Comments on: Big Bank Brands, Big Consumer Contradictions

By: Mayor_kane

Mayor_kane — Tue, 19 Mar 2013 14:44:53 +0000

Thank you for the articles

By: Editor

Editor — Tue, 19 Mar 2013 14:23:30 +0000

The Financial Brand has a number of articles addressing the issue of trust in the banking industry. How Banks Completely Nuked Consumers’ Trust (And What They Should Do About It) 9 Critical Ways Financial Institutions Should Rebuild Trust With Consumers Study Shows Consumers Distrust Banks More Than Any Other Industry It's pretty simple: Don't screw people over. Consumers feel betrayed. Like having a spouse who cheated, it takes a long time to undo the damage that's been done. It takes a long time to build trust. It takes even longer to rebuild it.

By: Mayor_kane

Mayor_kane — Tue, 19 Mar 2013 12:35:41 +0000

I run a small bank in another country but much of what’s mentioned here is applicable to the industry worldwide.

What do you think would help banks regain the trust and the relevance it one had to its communities?

By: Epic Fail: Barclays’ Facebook Debacle Highlighted the Chasm Between the Bank and Its Customers | news.magzimus

Sun, 15 Jul 2012 18:00:29 +0000

[...] least trusted companies in the world, along with airlines as well as wire providers. In the 2010 survey, usually 16% of HSBC business concluded with the statement: “My monetary provider does what’s [...]

By: Trust in Financial Institutions Drops, And How to Reverse the Trend | The Financial Brand: Marketing Insights for Banks & Credit Unions

Mon, 28 Mar 2011 18:44:52 +0000

[...] to Edelman’s research, trust in US banks plummeted steadily since 2007. A similar study from Forrester in early 2010, concluded that roughly 70% of big bank customers don’t trust their [...]

By: Jen S

Jen S — Wed, 17 Feb 2010 01:55:45 +0000

Interesting methodology…I’m not sure I understand. Read: Worse rates = better brands. Does this really measure a brand value? How did business efficiency, TARP money, assets, etc. play into the calculation?

By: Editor

Editor — Thu, 11 Feb 2010 19:53:41 +0000

Hi Michelle,

Thanks for the comment.

Presently, it isn’t clear that any bank is actually putting any of these survey findings to use. It will be interesting to see if/how any of these banks use this “customer feedback to improve their services.” Historically, banks have been nonplussed by surveys like these.

By: MichelleD

MichelleD — Thu, 11 Feb 2010 19:31:17 +0000

It’s good to hear that banks are using customer feedback to improve their services (and ultimately their brands)… I couldn’t believe that the Forrester’s survey report that was recently released, had banks at the bottom of the list.

By: Robbie Wright

Robbie Wright — Wed, 10 Feb 2010 00:07:53 +0000

It is like looking at intangible assets on a balance sheet. It is a bunch of hokus pokus. The flight to safety factor is what is causing people to withdraw their money from the stock market and deposit it into a credit union or bank savings account. Consumers are withdrawing their money from the stock market and even though some of the banks may have participated in the sketchy activities that caused many of the current economic problems, they just want their money close. And if Lehman is “too big to fail” so is BofA, Chase, et la.

By: Editor

Editor — Tue, 09 Feb 2010 21:30:33 +0000

True, money has poured out of investments, but why are people pouring it into banks they don’t trust? It’s like people are saying, “I hate your guts! Can I give you $100?”

And yes, you’re right MZ, I am saying that brand ranking systems are not very useful or meaningful. If someone was looking to buy one of these financial institutions, the data/evaluations might have bearing. But banks cannot use the brand ranking systems available today as any kind of constructive, comparative brand-building tool. The only thing it gives them is a reason to send a press release: “Hey look! We’re #7 on the list!”

By: MZ

MZ — Tue, 09 Feb 2010 19:29:45 +0000

People are trying to stay more liquid, so money that had been kept in mutual funds, stocks and bonds is being transfered to savings accounts. I don’t think the rise in deposits is representative of a gain in customers, so much as existing customers transferring assets to safer and more liquid savings accounts. (A low APY is better than a negative one.)

Also, if banks overall rate lower in consumer perception, then some still have to come out at the top of the dung heap. So maybe the Brand Finance and Forrester findings are not as big a contradiction as they appear at first blush. Consumers distrust banks more, but some bank brands are still less tarnished than others and capable of charging a premium.

The Brand Finance measure is comparing brand values to last year. But the Forrester measure is cumulative. In other words, it’s what people are feeling at this moment in time, not so much how what they are feeling now compares to a year ago. So Forrester says distrust is very high (even if possibly some banks are faring better and some worse compared to last year).

I can see how both Brand Finance and Forrester have room to be correct, though I do get the irony that you are noting. I also think (as you seem to imply) that concrete brand value measurements can be somewhat hokus pokus.