“I’ll be honest, there were
initial apprehensions.
But this soon gave way
to excitement.”
– Cas Scott, Companion CU
Marketing Manager

To support a new brand theme, “We’re Listening,” the members of Companion Credit Union, based in Australia, were invited to vote and pick the new logo for their organization.

Voting was open the entire month of October, and the winner was unveiled at the credit union’s Annual General Meeting on November 12th.

“The credit union is really owned by the members and therefore we decided we should invite them to actively participate in helping us decide.” said Ray O’Brien, CEO/Companion.

Over 1,000 votes were cast by the credit union’s 12,000 members.

The old logo had a style reminiscent of the London Underground.

The winning logo maintains links back to its predecessor using color and a curvy shape.
Four icons of people join hands to create a “C” monogram cupping the name.

On its website, the credit union says the new logo represents “our members, staff, community and our partners all working together — hand-in-hand — connected as one, for the mutual benefit of us all.”

Key Question: How comfortable would you be handing a strategic brand decision like this over to the general public?

In an interview with The Financial Brand, Cas Scott, the credit union’s Marketing Manager, said “I’ll be honest, there were initial apprehensions,” Scott said. “But this soon gave way to excitement as the concept grew on our management team.”

“Many of our current members founded Companion Credit Union, so it only seemed fitting that they would be a part of our new journey and direction,” Scott added.

The credit union gave the membership three choices, with a couple of flavors on two of them.

Option A - Opts for a dramatic square instead of a circle.

Option B - Only minor alterations to the old logo, mostly eliminating the pixels.

Option C - Different arrangements and combinations of the people icons were explored.

A new slogan is the centerpiece of the credit union’s new brand positioning, featured in TV spots stressing a message of dialogue and interpersonal communication between the credit union and its membership.

“We’re Listening” will replace the previous tagline “Your Personal Financial Companion.”

According to research conducted by the credit union, Scott said the new slogan “better reflects the relationships we have with our current members, and adds-in the warmth and emotive feelings they have with us.”

The credit union’s corporate website will be re-launched in two weeks with the new logo and slogan.

Companion’s TV spots prove you don’t have to be a billion-dollar credit union
to get commercials on TV. They produced a series of three spots that use only still images
but they keep them moving at a healthy clip.

A fledgling microsite used to launch the campaign aspires to be something along the lines of a community portal/local social media hub.

There’s also a 12-minute history video you can watch.

Back in September, as the economy began disintegrating, an unusual trend began to emerge. The media — who had been ignoring credit unions for decades — all of a sudden started talking about these member-owned financial cooperatives that had managed to avoid the economic catastrophe. Hundreds of articles later, it doesn’t appear that the trend will stop anytime soon.

Reality Check: The biggest PR bonanza to hit credit unions — ever — will come to a screeching halt if they take TARP bailout money as part of a “rescue plan” to address “toxic assets.” Expect all the good news stories about how credit unions are “safe and sound” to evaporate. Poof! Gone.

This is Part IV of The Financial Brand’s on-going coverage of the media’s lovefest for credit unions. Here are the other installments in case you missed them: Part I, Part II. Part III includes a summary of the main themes the media has been hitting in their articles.

“Downturn sparks credit union rush.”

– BBC America

“Credit unions weather downturn.”

– San Luis Obispo Tribune

“Credit unions become new safe harbors.”

– Fort Worth Business Press

“If you think credit unions are single-location dinosaurs available just to employees of certain firms, it’s time to think again.”

– Yahoo! Finance

“As U.S. banks retreat, credit unions step up loans.”

– Reuters

“While banks struggle with risky investments, credit unions avoid the fray.”

– Business West

“A credit union can help you through these tough times.”

– Easier.com

“In today’s economic times, credit unions offer some better options.”

– Naperville Sun

Earlier this week, SunTrust Banks unveiled a new brand tagline and marketing campaign focused on savings. The “Live Solid, Bank Solid” campaign speaks to what the bank describes as “a new era of thrift, security and financial responsibility.”

The new campaign is rooted in the notion that consumers are moving away from conspicuous consumption towards a more mature, solid approach to their finances.

The script for the TV spot reads, “Remember the Joneses? And all their stuff? And how people were always trying to keep up? Well, some of us woke up instead. We no longer want big and flashy. We want real, true and honest. We want to stand on solid ground, and we want a bank that does the same. A bank that’s here to help us prosper, whatever our definitions of ‘prosper’ may be. Live solid. Bank solid.”

Copy writing throughout the campaign is creative, direct and crisp. The messages reflect the new economic reality many Americans are facing. And it’s all delivered in a casual, confident manner.

SunTrust says it conducted months of consumer research prior to developing creative components. Among the findings:

• Nearly 80% of those surveyed would rather be envied for spending wisely than for spending freely.
• 83% believe it’s not about how much money you have, it’s about what you do with the money that you already have.
• Eight in 10 believe that while having more money won’t necessarily make you happier, feeling in control of the money you have will increase happiness.

Key Question: How many financial institutions do any research before they launch an ad campaign? For that matter, how many do any research afterward either?

“Consumers are thinking more about how they are handling their money than they were.”
– John Fitzgerald,
President/Mullen

“It’s apparent that consumers are thinking more about how they are handling their money than they were even six months ago,” said John Fitzgerald, president of Mullen, SunTrust’s ad agency. “They are moving to lives of more substance, reason, and long-term thinking, and feel a stronger sense of personal responsibility for the direction of their lives.”

SunTrust says the campaign was underway months before the economy took a nosedive.

The campaign debuted during NBC’s Sunday Night Football, and includes TV, print, radio and internet advertising.

SunTrust’s previous tagline was “Seeing beyond money.”

SunTrust spent $26 million on advertising last year (excluding online), and $21 million through September of this year.

The ad’s body copy reads, “Something has been missing. But more and more people are choosing to find it again. Solid ground. It’s a great place to be. A life built around balance. More substance. Less flash. Priorities straight. Ready for a return to solid? There’s a bank ready to help with that. SunTrust. A bank that’s here to get the fundamentals right. Uncomplicate the complicated. Champion convenience. And find ways to help you prosper, whatever your definition of prosper might be.”

Here are recent stories of interest from around the web.
Click on the hotlinked headlines to read more.

Article blames WaMu problems on ‘café-style’ branches

An American Banker article suggests Chase’s takeover of WaMu is some sort of referendum on innovative branch design, and that traditional, conventional branches are the way to go.

Beyond the fallacious inference that WaMu’s branch design had anything to do with their collapse (hint: subprime mortgage lending), the article also described the bank’s the branches as “cafés.” There are a lot of words to describe WaMu branches, but café? Nope, doesn’t fit.

WaMu never ever tried to make their branches “hangouts.” They didn’t provide any comfy seating. There wasn’t any ambient alternative music. There wasn’t any free coffee. What ING Direct does can be called a café, but not WaMu’s Occasio branches.

The only thing WaMu did that was really any different was replace a traditional teller line with transaction “pods,” which supported the bank’s emphasis on transactional efficiency.

Research revises playbook for 700+ Wells Fargo copywriters

Wells Fargo researched how effective its written communications were. Following its ethnographic study (defined here), the bank shared its learnings with 700+ content writers in 30+ workshops. Among the findings:

• Marketing messages, especially those with presumptive language like “Congratulations!” or “Good News,” were viewed quite negatively; customers used words like “ploy” and “scheme” to describe them.
• The bank could mitigate negative reactions to bad news like a notice of insufficient funds if the communications provided relevant advice.
• Many consumers view the bank’s Website as the primary visual reference point, noticing differences with layout, color, and other design elements across communications.

Oh happy days… Credit union logo jet, circa 1999

The economy sucks now — the salad days are over and the gravy train has left the station. But less than a decade ago, even credit unions could afford to put their logo on jets.

Great advice for building your financial brand

October’s issue of American Banker has a fantastic article on bank branding — especially for its length (just over 700 words). The author, Cristi Kirisits, VP/Marketing at Silverton Bank, makes a number of excellent points, including:

• Your brand absolutely has to deliver on its promises
• You create familiarity and trust by delivering a consistent experience
• Every interaction is a make-or-break experience that will leave a lasting impression
• Establish an internal team of “brand champions”
• Only one competitor can be the cheapest — all the others must use branding

Earlier this year, The Financial Brand wrote about how Cristi’s bank changed names and became Silverton. They definitely “get it,” and are walking their talk.

Shrinking footprints, growing profitability

According to an expert quoted in a CUES article, branches traditionally break even with deposits in the $30-40 million range, although branches with smaller footprints and fewer employees can turn profitable at under $15 million. That may help explain why the average square footage of branches is dropping from 3,900 in 2004 down to 3,500 last year. You can even get away with 2,500 square feet in some markets. And some in-store branches are only 600 square feet.

Login to Wells online banking, see “safe & sound” splash screen

As Netbanker notes, the best time to get your customer’s attention is right after they log in to look at their account. That’s why login-screen marketing should be in your mix. Just don’t overuse it, or you’ll piss people off.

These brand ads for Continental Bank in Wisconsin encourage people to get a firm grip on their financial situations. Each ad relies on a carefully-crafted custom photo where someone is wrestling — literally — with some aspect of their financial life: a wallet, purse or checkbook.

The ads are ultra-simple in their message, supported by a strong, story-telling visual. There’s only one blurb of copy — the headline — that simply says, “Take control of your finances.”

The ads all bear a common logo block with the very clever tagline, “Money. Wise.”

Based on the age of the people used in these ads, it’s safe to assume they were squarely targeted at Gen-Y.

Key Question: How many people will relate to these ads because they feel like their financial situation is out of control?

This style of advertising is extremely popular with ad school grads, but not everyone is a fan.

The bank has 8 branches, but the ads only promote one: the main HQ branch.

Each of these photos probably cost around $10,000 each.
Scouting locations, talent, props, lighting, photographer, makeup, etc.
It all adds up fast.

Agency: Freight Train

Last week, The Financial Brand reported that Arp State Bank in East Texas was changing its name to American State Bank. The article noted a number of other financial institutions who already use American State Bank as their name, including ones in Iowa, South Dakota and North Dakota.

But there’s already one in Texas too.

Someone from an American State Bank in Texas sent The Financial Brand an email correcting a hotlink in the article that had been mistakenly pointing to them.

Further research has revealed that, indeed, there are two banks planning to operate in the state of Texas under the name American State Bank.

The newcomer (formerly Arp State Bank) has three locations, all in East Texas. They were founded in 1911 and now have $100 million in assets.

The incumbent is a 60-year-old financial institution based out of Lubbock, Texas and has 35 Texas locations.

Reality Check: This is a big problem. It looks like about as clear a case of trademark infringement as there probably ever could be.

When The Financial Brand asked the incumbent American State Bank in Texas how they felt about the situation and what options they were considering, the answer was “no comment.”

Yikes.

Dave Deits, one of the nation’s foremost experts on financial trademark and legal naming issues, says this situation serves as a reminder to do your due diligence. “The process of adopting a new name or trademark — even merely expanding under an existing name or trademark — can have significant and long term consequences. It’s very important to analyze the legal rights of others, whether a federal registration might be useful and available, and how these things impact short- and long range plans.”

This isn’t the first time this year Texas banks have treaded on each other’s trademark turf. Back in August, The Financial Brand reported about a second Texas bank picking the name Vista. And while we’re on the subject of Texas imitators, don’t forget about this story.

For many years, credit unions have lobbied hard to make sure they get fair and equal treatment from the U.S. Government. But begging the Treasury for TARP money is not a good idea.

CUNA, NAFCU and Fryzel at the NCUA have all joined together recently with their hands out as they ask for taxpayer relief. Each time they do, it undermines all the positive press credit unions have been getting (as reported by The Financial Brand here, here and here).

Key Question: Exactly how big is this problem? How many credit unions out there were engaged in risky lending practices that now leave them in such a vulnerable state that they need a bailout?

After weeks and weeks of mainstream media articles touting the safety, security and soundness of credit unions, why would credit union industry leaders want to come out with a “we-need-a-bailout-too” message? Are they willing to gamble the entire industry’s image just to make sure they get the same treatment as big banks?

Reality Check: If credit unions need a bailout, then they are contradicting claims that they are run differently than banks.

Big banks have made it tough for everyone in the financial services industry, for sure. And maybe the imposition on credit unions is so great that they actually need some relief. But if that’s the case, then this assistance should be directed at all credit unions, and not just used to create relief mechanisms for those who put themselves in jeopardy.

And if credit union associations feel that injecting capital into conventional banks is a misuse of TARP funds, then they should be lobbying Congress and the Treasury to have that money returned to the taxpayers — not begging for their “fair share.”

Bottom Line: If credit unions get TARP money, they are taking a powerful arrow out of their quiver and handing it to banks who will fire it right back at them.

If there are credit unions out there with “toxic assets” due to subprime mortgage practices, then they should take their lumps as quietly as possibly and not drag the entire industry down along with them.

Here are recent stories of interest from around the web.
Click on the hotlinked headlines to read more.

Schiff predicts every aspect of today’s meltdown in 2006

Peter Schiff. If you didn’t know his name before now, you’ll remember it after watching this video. Among Schiff’s forecasts — made a year or two ago:

• By November 2008, we will know we’re in a deep, dark recession
• Subprime mortgages will collapse the housing market
• Houses will be on the market for 6 months or more
• Home equity will “come crashing back to earth”
• Consumer access to credit will evaporate — including auto loans and credit cards
• You should stay out of equities
• Financial stocks are “toxic”
• Bonds will be hit hard

Schiff nails it. Over and over. And the announcers on Fox Business and MSNBC actually laugh — in his face — over and over. Then the so-called “experts, including Ben Stein, make a number of dubious stock picks: Merrill Lynch, Goldman Sachs, Bear Stearns and WaMu.

Top 5 banks now control 39% of deposits

How some banks are battling the confidence crisis

PR departments at Bank of America and other survivors are working overtime to soothe nervous depositors-and explain higher rates and fees. BofA, for instance, is boosting efforts to ensure employees are up on current events and know what to say about them. They’ve added a “Media Buzz” section to their intranet, a collection of news stories customers may have read, as well as “Bank Watch,” which flashes news of key developments in the financial services industry accompanied by suggested talking points.

When PNC said it was buying National City, BofA sent around a script for employees to use with customers that might be affected: “Your deposits would be safe with PNC, but wouldn’t you prefer to move their money to BofA, a bank you are already familiar with?”

Local banks feel left out

The smaller regional and local players say the bailout just helps big banks. Credit unions and community banks are grumbling that the massive Wall Street bailout package will put them at a competitive disadvantage. Apparently, these seemingly begrudged financial institutions feel it is only fair for them to get a share of the taxpayers’ money, even if they don’t really need it.

AmEx switches to bank charter to get slice of TARP pie

AmEx, dreading it might fall behind its big bank brethren, decided to reclassify itself so it could hit the Treasury up for $2.5 billion. Neato. Maybe those credit unions that want bank bailout money so badly should consider a charter change? It’s been reported that Starbucks could be facing a bleak future from a failed economy. Could they next to run begging for a TARP handout? Don’t laugh. It could happen.

Crestmark says “We’ve got plenty of bread!”

The business bank sent this message out as an email and postcard in early October. The marketing pieces were created in response to the volume of phone calls the bank was getting as to whether Crestmark still had any money to lend.

ING Direct officially opened its newest café in Honolulu last Sunday. The branch — if you can call it that — features more than 9,566 square feet of space with a conference room, broadcast studio, free WiFi and terminals for Internet access.

The cafe features an ocean theme highlighted by a 1930s custom outrigger canoe on loan from the Friends of Hokule’a.

Besides a full-service cafe serving espresso drinks, there are pastries from Panya Bistro.

The new Honolulu ING Direct café will also serve as a meeting place where nonprofits and local groups can host events. Additionally, the café will provide free financial seminars to the public on topics ranging from raising financially fit children to neighborhood economic summits.

The branch is staffed by 12 employees.

The previous tenant, surfing giant Local Motion had constructed a DJ sound booth to broadcast surf reports. It jived with the ING Direct brand, so the bank decided to expand it by adding a broadcast stage. The bank is encouraging those active in the local broadcast community to use the space, Andy Bumatai kicking things off with his NightTime show in January. ING Direct hopes to follow this with educational programs supporting Hawaii’s youth in broadcasting. The bank will also invite local celebrities, athletes, and state/city officials to use their “Hawaiian Sense of Place” as a backdrop for press conferences.

Creating a brick-and-mortar presence for a purely online bank

The story behind the cafés makes perfect sense. When, Arkadi Kuhlmann first started ING Direct, he had people visiting the ING Direct building on a regular basis to make sure the bank actually existed. It was the first time that anyone had heard of a bank without any branches. People drove from miles away just to make sure the place was legit. Kuhlmann figured the least he could do was invite them in for a cup of coffee and answer any questions they had. The concept stuck, so when he brought the ING Direct concept to America, he decided to open ‘touchpoints’ for the public.

ING Direct is committed to its branchless strategy. In an interview with The Financial Brand, a spokesman from ING Direct said, “It is part of our brand and is something that our customers have grown to appreciate.”

This is the third location ING Direct opened this year: New York, St. Cloud, Minnesota, and the most recent in Hawaii. The bank says it will build more in the future if it can “find the right footprint.”

ING Direct says the cafés are profitable retail operations, but they are more concerned with how the cafés build the bank’s brand image and awareness.

None of the cafés have any cash handling capabilities. ING Direct says they’re meant to serve as “public ‘touch points’ and not branches.”

ING Direct also started a unique partnership with Cycle Life in DC to operate as a reference/information/referral center in their newly operational café.

“The concept is like no other and as it continues to grow. We learn so much more with each success.”

ING Direct has been operating globally since 1996. They have over 20 million customers worldwide, 25,000 of them are in Hawaii. That’s about 2% of everyone in the state.

Tip of the Hat: To Jeff Mirabello in ING Direct’s Corporate Relations department for his cooperation with the writing of this article.

Okay, sorry, this gets a little complicated. There was a Commerce Bank in New Jersey. But earlier this year, TD Banknorth took them over. That merger created a huge naming hassle — including a lawsuit from a Commerce Bank in Massachusetts — over the Commerce name. In the end, the Massachusetts bank prevailed, preventing the Canadian behemoth from using TD Commerce, the name it preferred.

Now, a Commerce Bank — this one in Pennsylvania — is merging with Philadelphia-based Republic First Bank. These newlyweds are opting for Metro Bank as their new name. The combined company will have total assets over $3 billion and more than 1,200 team members. The company will pursue an aggressive growth strategy with new stores in Central Pennsylvania, Southern New Jersey and other markets.

The trouble is, there is already a Metro Bank in Houston. And one in Alabama. And another in Florida. Oh yeah, and one more in Georgia.

A collection of Metro Bank logos from various financial institutions from around the country.
Notice the use of circles containing an ‘M’ or ‘M’ symbol in each of the logos.

But wait… There’s more.

There’s also a First Metro Bank in Alabama, an American Metro Bank in Illinois, and a US Metro Bank in California.

Reality Check: You shouldn’t use another bank’s name — ever.

1. It doesn’t help differentiate you.
2. It makes it harder for people to find you online.
3. It exposes you to all kinds of legal problems over trademarks.

Contrary to popular belief, it doesn’t matter if the bank is in another state. If you pick a name identical to another financial institution, you’re opening yourself up to a world of legal hurt. It doesn’t even have to be identical, as was the case with TD Commerce.

Bottom Line: If your bank or credit union is considering a name change, avoid new names that sound safe and familiar. Avoid them like the plague. It takes less than 5 minutes in Google to see what kind of trouble you can expect.

A print ad obscures all the text with asterisks to highlight the banks’ encryption capabilities.

“We found we didn’t have a brand. People were generally confused about what it is we offer.”
– John Ikard, CEO/President

1st Bank in Denver is rolling out a new ad campaign this month with an emphasis on online security. The creative campaign, targeting younger consumers, includes television, print, outdoor and web ads on sites like Yahoo, Ask.com, and MySpace.

In an interview with Marketing Daily, Brian Jensen/VP, said, “We think when other banks are pulling back, we have a chance to stand out.”

“When is there a better time, when you’re a strong viable financial institution, a community bank, to differentiate yourself form the competition than today, when times are difficult?” said John Ikard, the CEO/President of FirstBank.

The bank has a link off its website to a “Stability, Strength & Safety” page with all the right messages. It’s a smart move.

The Denver-based bank has 11 branches and 29 ATMs.

Agency: TDA Advertising & Design in Boulder, Colorado.

Outdoor ads depict $20 dollar bills with the presidential images obscured.

This non-traditional outdoor ad is clever and creative.

Posters speak to a younger audience’s lack of financial knowledge and sophistication.
“We’ll help you understand your money.”

“Bunnies”
In this spot, a man lays in an imaginary field that smells of fresh-baked cookies and is full of bunnies. It’s a metaphor for the bank’s online banking experience.

“Shirtless”
Some banker rips the shirt off a guy’s back, then smacks the coffee out of his hands.

You can see a couple more TV spots in the series here.

Earlier this year, Commonwealth Bank in Australia was harshly criticized for hiring a U.S. ad agency. It didn’t matter that the agency was world-famous Goodby, Silverstein & Partners, people down under were skeptical that they wouldn’t grasp the nuances of Aussie culture.

The hell with Aussie culture, they said. Instead of even attempting a spot that might try to honor the land of Oz, the bank and agency decided to take a huge gamble and made one of the weirdest spots you’ll ever see in the financial industry.

Here’s the concept: A bigtime American movie director, hired by a fictitious U.S. ad agency, makes an  unintentional parody of Australian culture in a new commercial for Commonwealth Bank. The makebelieve spot piles one Aussie stereotype on top of another: Mad Max koalas from Beyond the Thunderdome tangle with a didgeridoo-playing, boomerang-chucking Crocodile Dundee lookalike. The bank’s executives are not amused.

It’s a spot-within-a-spot, where art imitates life imitating art.

When the commercial first debuted, only the first 30 seconds were shown.
To many, it looked like the bank had gone completely insane.
A little while later, the whole spot aired, revealing the bank’s displeasure with the “ad” within its ad.

People hated it. It was lampooned around the world. But both the agency and the bank staunchly defended their strategy.

30% of Australia’s 16 million people don’t like the campaign or the strategy. That’s only 4.8 million people, or about 1-out-of-3.

Now, they’ve got some results.

Mark Buckman, the bank’s marketing director, says that brand awareness has grown from 70% to 95% while simultaneously cutting the media budget 30%.

But Mr. Buckman also acknowledged that 30% of Australia’s 16 million people don’t like the campaign or the strategy. That’s only 4.8 million people, or about 1-out-of-3, but Buckman says’ he’s okay with it because “16 million Australians are a big enough pond for us to fish in.”

Buckman defended the bank’s decision to ship it’s highly coveted $100 million account overseas: “We couldn’t find an advertising agency in Australia that was prepared to think differently about us.”

“We were sick to death of being told what we couldn’t do.”

That’s fine, but is that why they took such a huge gamble with the bank’s brand?

Buckman said there was a fundamental belief that perceptions of 100-year-old institution could not be changed. “In order to get people to think differently about us, we had to get them to notice us and then get them to talk about us — and talk they did,” he said. “We set out to achieve three things — impact, comprehension and likeability.”

Two out of three ain’t bad. But doesn’t “likeability” seem like an important brand association?

About CEO Ralph Norris’s feelings towards the risky strategy, Buckman said, “He didn’t shy away, but he did say ‘this is either going to be a blaze of glory or just a blaze. Either way there are going to be flames.’”

True that.

Key Questions:

• Would you prefer to be well-known by many, but unliked? Or would you rather be liked, but only known by a few?
• Is brand awareness more important that positive feelings about a brand?

Here’s a story from a reader of The Financial Brand. We’ll call her Erica (that’s not her real name). Erica got a letter from Chase a month ago. The letter informed Erica that her home equity line of credit was arbitrarily being cut by 65% — down to $171,000 from $495,000.

Here’s what the letter said:

“With home values falling in many parts of the country, we’ve used a proven method to estimate your home’s value at $530,000. Unfortunately, this value no longer supports the full amount of your Line of Credit.”

A more honest version of the story probably goes something like this: “We were running low on capital, credit got tight, housing prices plummeted and we freaked out. Sorry. We’ve had some time to think it out, and we acted hastily. Ooops.”

The Financial Brand has confirmed that Erica’s house is easily worth at least $1 million — there’s no doubt about it. You can’t find any 5,000 square foot luxury homes in her city — in any major metropolitan market, on the water, with amazing views and a private elevator — for anything close to $530,000.

Needless to say, Erica was miffed. Even though Erica had never needed to use more than $60,000 of her home equity line and the current balance was less than $50, she liked the idea of being able to borrow half a million bucks just by writing a check.

Sure. Why not?

Erica was on the verge of shipping an official appraisal off to Chase to prove she was indeed worthy of having her line of credit reinstated. The appraisal would have put his house at around $1.4 million.

But then, all of a sudden, out of the blue, came another letter from Chase:

“We apologize for a recent letter that incorrectly reduced your home equity line of credit. Unfortunately, the valuation was not properly matched to your property. So please disregard that notification. Your line of credit limit has been reinstated to your original credit line of $495,000 and you may begin drawing against it again.”

In an email, Erica wondered aloud (to me, along with 40 of her friends and family), what shape Chase would be in today if they used their “proven valuation method” in other areas of their business.

Key Question: Did Chase use their “proven valuation method” when they decided to takeover WaMu?

Reality Check: Things like trust and confidence are the most delicate of brand assets. Just like with our interpersonal relationships, trust can take years to build and only seconds to lose. Often, all it takes is one bad decision and “poof!”

Observations & Reflections:

• Erica will probably never trust correspondence from Chase again.
• Word-of-mouth marketing is powerful stuff. Personal, first-hand accounts like this one — whether they are good or bad — are the kinds of brand stories people tell one another.
• It was good that Chase caught it’s own mistake, but it’s a mistake that shouldn’t have been made in the first place.
• A more honest version of the story probably goes something like this: “We were running low on capital, credit got tight, housing prices plummeted and we freaked out. Sorry. We’ve had some time to think things out more clearly, and we acted hastily. Ooops.”

Hampden Bank’s campaign, called “Evolved,” portrays out of town competitors as corporate dinosaurs that adversely affect local prosperity. The ads depict creatures with names like the “VelociMerger,” “Bureaucradon” and the “Bully Mammoth.”

The campaign included television, radio, billboards, bus graphics and print ads.

VelociMerger

The copy reads “Banking has evolved beyond the battling corporate monsters. Hampden Bank, indigenous to Western Mass., is more adaptable to your needs - online, in person, at ATMs or even in another language. Cold-blooded, out-of-town banking is about to go extinct. It’s nature’s way of telling you there’s a better way to bank just around the corner.”

Bureaucradon

The copy reads: “Banking has evolved beyond the complexities of corporate red tape. Hampden Bank is the next generation. Smart, flexible and adaptable to your needs - we’re more than just local and able. Cold-blooded, out-of-town banking is about to go extinct. It’s nature’s way of telling you there’s a better way to bank.”

The bank is wrapping the campaign under the slogan “A Brighter Idea.”

Agency: Winstanley Associates

In addition to winning three gold regional ADDY Awards, the national campaign was honored by the American Banking Association as one of the country’s best.

The would-be thief in this FBI image is a suspect in several bank robberies.

The employees working in a Seattle branch of First Mutual Bank recognized the man immediately. They’d seen his photo on a flier from the FBI and knew he was a suspect in previous bank robberies.

Instead of waiting for the man to rob them, the bank’s employees snapped to action. But they didn’t trigger any alarms, or call the police and run to the vault hugging each other.

“If a person is a legitimate customer, they will experience superior service. If their intention, however, is to rob the bank, they will experience paranoia, anxiety and a desire to escape.”
– FBI Special Agent Larry Carr

They just started a conversation with the man by greeting him and saying hello.

The man left the branch without any money — and without incident.

You might think this is a silly way to thwart a would-be robber, but it works.

Twice in a row, as a matter of fact.

After the robber left First Mutual, a bank employee called a nearby U.S. Bank to give them a heads-up: the man might be coming their way next.

Sure enough, the guy walked into the U.S. Bank branch, but to his dismay, he confronted the same sort of friendly, personal service he found at the First Mutual location. So he left, empty-handed again.

Key Insight: Robbers don’t like good customer service. A personal touch coupled with questions about opening a checking account annoys robbers. Why? Because they would prefer to remain fully anonymous and unseen. And because good service doesn’t fit the branch experience they usually encounter. In a sense, good, personal service is so uncommon that it surprises robbers, catching them off guard.

As FBI Special Agent Larry Carr puts it, “If a person is a legitimate customer, they will experience superior service. If their intention, however, is to rob the bank, they will experience paranoia, anxiety and a desire to escape.”

Carr worked with EHS Design, the financial industry’s leading architectural firm, to develop a complete strategy for secure branch design, something they call SafeCatch. NPR even did a piece about it last year.

Robbers will often “case the joint” before robbing it. If they walk in and are confronted with attentive staff who seem to be “on their game,” they’ll move on to softer targets. Remember: They’re after easy money.

Reality Check: You should be providing great service to everyone who walks through your branch door…no matter what — people with purple mohawks, 14-year olds, even guys with sunglasses and hoodies. If not because you want more business, then at least for the safety of your employees.

Bottom Line: Banks, 2. Robber, 0.

You don’t need to turn your branches into medieval fortresses to prevent robberies. A branch built like Fort Knox undermines your ability to ability to provide warm, friendly personal service.

Who knows, a greeter might be a more effective method of preventing robberies than having an armed security guard. One thing is for certain: greeting people with a friendly handshake, a genuine smile and a warm hello definitely helps create a positive brand image — especially among your law-abiding branch customers.

If you want more information about SafeCatch, check out this brochure (PDF) or contact EHS Design.

Here are summaries of some of the more interesting name changes from around the financial industry in recent months.

South Shore Cooperative Bank slims down to ‘S Bank’

The bank is shrinking its name from 21 letters down to one. Nice. The bank said the old name, South Shore Co-operative Bank, was a regular source of confusion for people outside the bank because of its similarity to a larger bank in town, South Shore Savings Bank. That’s understandable. Don Gill, the bank’s CEO, says the process took over a year and a half, which is fairly common for a financial institution name change. Gill also doesn’t care whether you like the name or not. The point is, you’ll remember it. Other names the bank considered: “Via” and “Spire.”

‘In’ out as InTrust FCU shortens to ‘Trust’

No reason or explanation for the name change was offered, but it’s quite possible due to a trademark problem. There are 34 other credit unions using the word Trust in their names, making it one of the most common in the industry. But credit unions don’t often sue other credit unions. So maybe it was Intrust Bank?

InTrust FCU’s old name and logo (left), the new one (middle), and Intrust Bank (right).

Forest Kraft FCU becomes ‘Centric’

When Forest Kraft Federal Credit Union was founded more than 70 years ago, it served Brown Paper Co. employees exclusively. On Saturday, November 1, the credit union officially became Centric FCU. The rationale is familiar: “”Our intent in becoming Centric is to better reflect who we are. There are many in the community who, because of the name Forest Kraft, don’t realize they can join.” Board Chairman Joe Phillips said “the name Centric will always serve as a reminder of the great history we have to celebrate.” Brown Paper + Forest Kraft = Centric? How does that work? No explanation could be found, but maybe it has something to do with concentric rings in a cut tree?

Two Iowa credit unions add ‘Community,’ one doesn’t

Casebine Credit Union became Casebine Community Credit Union. And Frontier Credit Union became Frontier Community Credit Union. School Employees Credit Union decided not to follow suit, opting for Meridan Credit Union instead of School Employees Community Credit Union. Many credit unions pursue the “Community” naming strategy to reflect a more open charter, but few find that it works as well as they hoped. It’s worth pointing out that Iowa credit unions are required to have members approve name changes in a vote (51% of voting membership needed).

Arp State Bank Becomes ‘American State Bank’

The bank said it needed a name that was less geographically restrictive as it expands. The new name, American State, certainly goes well beyond its East Texas beginnings. There are already American State Banks in Iowa, South Dakota and North Dakota.

Community Bank of Orange becomes ‘Greater Hudson Bank’

Basically, the bank swapped one geographic name for another. “The Greater Hudson Bank name better identifies our brand, as well as our present and future market area plans,” said Eric Wiggins, president and CEO of the bank.

“No matter how long
the night has been,
there’s always breakfast.
This is America.
The sun comes up and
we get a fresh start.”
– BofA’s ‘Pancakes’

Bank of America’s current brand TV ad titled “Pancakes” is an artfully subtle message of hope and reassurance. It sends a message about the economy that Americans want to hear: “Things will be okay and we’ll get through this.”

In a sense, the ad is almost an ad for “Brand America” (not just the bank, but the whole country). It taps deep into the American psyche, speaking directly to the consummate faith in our power to prevail through even the darkest times.

Script for BofA’s “Pancakes”

No matter how long the night has been, there’s always breakfast.
This is America. The sun comes up and we get a fresh start.
At Bank of America,
opportunities are waiting for every customer, every day.
Like risk-free CDs, innovative ways to save,
and smarter ways to spend.
No wonder one-out-of-two households in America
trust their finances with Bank of America. Bank of Opportunity.

Sorry, you can’t see the spot anywhere online yet.
A spokesman from BofA told The Financial Brand the current economic crisis has kept the bank’s
internal communications team too busy to upload its latest spots to its Newsroom.
Here are a few still images from “Pancakes.”

Who knew pancakes could make such a beautiful metaphor? It’s almost like saying, “Hey, America just had a real economic bender. Glad that’s over. Now let’s have breakfast and get this hangover behind us.” Coupled with the visuals, it’s wonderfully optimistic.

The spot positions BofA as a leader, poised to guide America out of our economic crisis. This is a much more creative way to reassure people with a “safe and sound” message than simply saying, “We’re safe and sound.”

The spot weaves in a few products and services, then finishes with a point-of-proof that essentially says “half of America trusts us, so you can too.”

All around, it’s a smart spot — one that’s on-brand for BofA, offering a relevant, timely message.

Agency: BBDO

Here are recent stories of interest from around the web.
Click on the hotlinked headlines to read more.

Who’s next to get gobbled up?

This guy forecasted the takeover of National City, and BINGO! He nailed it. Guess who else he picked? Keycorp and Fifth Third, although he also thinks Fifth Third might be in a position to take over Key Corp. If not Fifth Third, then US Bank. Maybe US Bank should swallow Fifth Third while Fifth Third is gobbling Keycorp. Sounds like the best way to maximize bailout subsidies.

575 branches get new TD signs

The original plan was to change the signs to “TD Commerce” following last year’s merger between TD Banknorth and Commerce. But due to unexpected trademark problems including a lawsuit from another Commerce Bank, the newlyweds had to scrap their plans and go with just plain old “TD.” At a cost of about $20,000 per branch, that’s about $11.5 million. Ouch! Now, what do about the signs on TD Banknorth Garden… There is a bright side to the story: The bank completed the sign swap on all 575 branches in only five days (October 31 - November 4).

Grade-A prime media placement

Arizona State CU had the only full page ad in the A-section of the Arizona Republic on election day. 22 pages in the A-section, and theirs was the only ad. It was on the back page. Paul Stull, the credit union’s VP/Mktg. said the paper sold out that day. How cool is that? (You can click on the ad to enlarge it.)

ATM network saves CU members $20 million

The Credit Union 24 ATM network says credit union members saved $20 million in fees so far this year by using its 50,000 surcharge-free ATMs nationwide. At an average fee of $1.50, that means there were 13 million ATM transactions, or an average of 266 transactions per ATM for the year (that’s about one transaction per ATM per day). Kudos to the Credit Union 24 network for not dinging members with fees. Now, can we maybe freshen up the logo a little?

The biggest collection of bank logos ever

This guy’s online collection of bank logos must be a real labor of love. He says he’s uploaded about half of the 5,000 bank logos he has on file. Unfortunately, the library only gets to “E” in its alphabetical listing before the HTML crashes. Doh, FAIL!

Before September 2008, you would almost never see a story about credit unions anywhere in the news. For decades, the mainstream media essentially ignored this sleepy sector of the financial industry. But these days, the news media is pouring piles of positive press on credit unions at a dizzying pace. And from the looks of it, news outlets won’t stop singing the praises about credit unions anytime soon.

Reporters, eager to report on any ray of sunshine they can find in this dour economy, are frequently touting the safety, strength and stability of credit unions. There is a wide range of points these articles make, but the main themes include:

• Credit unions are not-for-profit and owned by members (no shareholders)
• Credit unions typically offer better rates and lower/fewer fees
• Credit unions have money to lend
• Credit unions are more willing to look at an individual’s credit situation when making loan decisions
• Credit unions have insulated themselves from the subprime mess
• Credit unions often service their own mortgage loans, requiring them to be more prudent in their lending practices
• Credit unions are local, and not run by Wall Street bankers
• Credit union deposits are insured through the NCUA up to $250,000
• Credit unions are well-capitalized compared to their bank peers

If you’re a credit union, these are the things you need to be telling your audience.

Here are some of the headlines and excerpts from mainstream news outlets… in just the last two weeks.

“Bad times for banks means boom times for credit unions.”

– Time Magazine

“With banks reeling, depositors turn to credit unions.”

– Triangle Business Journal

“Credit unions offer alternative to skittish banks.”

As the banking industry stumbles through the crisis that has gripped the financial world, consumers have a viable alternative to a traditional bank: a credit union.
– Chicago Tribune

“As economy swoons, more people are joining credit unions.”

With all of the troubles taking place in the financial industry these days, one sector that appears to have avoided the mess of subprime and other shaky loans is credit unions.
– Bellingham Herald

“The uncertainty surrounding banks is proving to be a blessing for credit unions in the state.”

– New Jersey Biz

“Banks’ losses prove to be credit unions’ gains.”

For the most part, area credit unions have sidestepped the worst of the financial upheavals that have taken down some of the largest banks.
– San Diego Business Journal

“As banks tighten credit, credit unions booming.”

The only trouble they have, they say, is getting the word out to more people that they are sitting on money and eager to loan it.
– Crain’s Detroit Business

“Credit unions a refuge in dodgy times.”

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