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

Dueling piggy bank messages

To feed the pig or to not feed the pig? That is the question raised in this NPR story that examines the difference in two national PSA campaigns. One comes from Finland, where they are demonizing the financial industry’s iconic piggy bank, equating savings with “feeding the recession.” Meanwhile, back in America… The American Institute of CPAs is saying the exact opposite. They are running a savings-focused campaign called “Feed the Pig.”

Recently, The Financial Brand wondered whether the ubiquitous piggy bank was destined for the grave. With such a limited range of creative symbols available within the financial industry, it doesn’t look like that will happen any time soon.

American Banker: Ad spending down

Some banks are out there running brand ads, but that’s not the trend. American Banker looks at Neilsen’s data that says financial services ad spending dropped 10% last year (previous coverage from The Financial Brand here). Aite’s Ron Shevlin says that’s a good thing because financial institutions don’t need advertising right now. “There’s demand creation and there’s demand capture. Now, it’s more about how do you capture the demand that’s out there.” Exactly right, Ron. Like exploiting mergers and growing deposits. READ ARTICLE

No hats, no hoods, no sunglasses

The Financial Brand has previously expressed its skepticism in the effectiveness of the “no hats, no hoods, no sunglasses” approach to robbery reduction. But if the analysis in this in-depth article is correct, it seems that the method does indeed reduce robberies. READ ARTICLE

Top 500 financial brands

There just aren’t that may in the financial industry. There can’t be. Not any more. Nevertheless, here’s a 46-page PDF detailing the top 500 global brands in financial services. VIEW PDF

Build boldly

An interesting argument outlining the reasons why it’s a good idea to build branches despite an ugly outlook. READ ARTICLE

For the grand opening of three new in-store branches, OnPoint Community Credit Union held a supermarket sweepstakes. One person at each location won a 3-minute free-for-all, grabbing everything they could fit into a shopping cart.

One of the three sweepstakes winners filled his cart with $2,359, the biggest haul of the day. OnPoint matched the total in grocery giveaways, $5,769, with a donation to a local food bank.

“On your mark…set…go!”

A mostly-meat strategy landed this guy $2,359 in free groceries.

The promo was the brainchild of the folks over at Weber Marketing Group.

This BRANCH DESIGN for Italian bank Chebanca! is about as radical a departure as you can get from the hallowed walnut-and-mahogany themes of yesteryear. Ultra-clean, über-contemporary, high-tech and super-light MERCHANDISING.

The bank has a special link off the homepage of their website. The bank says, “Che Filiali! La rete territoriale di CheBanca! si compone sia di filiali nel centro delle più importanti città sia di presidi nei centri commerciali.” Even though it’s in Italian, you just know it says something like, “Check out this killer BRANCH DESIGN! It rocks tough!”

The project is the work of Crea International, who has a 3-D video fly-through of the branch model at their website.

Tip of the Hat: To Experience Fix, for the tip.

Be honest. If you didn’t work in the financial services industry, how often would you step foot in a branch?

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So how can financial institutions build relationships with those who prefer avoiding branches as much as possible? Here’s four ideas to get you started.

Pick up the phone

Many financial institutions use MCIF and other data to trigger automatic direct mail pieces, but Gene suggested that there is no perfect algorithm that can substitute for a human analysis of someone’s financial situation. Gene wondered would happen if you had someone who looked at a person’s financial relationship with the institution, including their last 20-30 transactions. What would you learn? He suggested you’d learn enough in just a few minutes to make it worth picking up the phone for a quick phone call.

Think about it. What impact would it have on you if your bank or credit union called you up and said, “We noticed your average daily balance has exceeded $5,000 for the last six months and we just wanted to let you know that you could be earning X.X% on your money. I could set this up for you today. The change in your account would be automatic and seamless. All your checks and debit cards would be unaffected. Best of all, it’s free. Would you like me to go ahead and take care of that for you?”

For most people, this kind of interaction would have a long-lasting impact on their feelings and loyalty to their financial institution. And it would also be a huge differentiator between you and your competitors. No one does this, probably because they think it’s too expensive to throw real, live human beings at a problem (ironic, considering the problem is one centered around personal relationships). But aided by technology (and maybe a good algorithm or two to get you started) this kind of program could definitely be profitable.

Write a note

Just like the telephone, here’s another World 1.0 technology that can help solve our Web 2.0 problems. It’s called a “pen” (you remember, those quaint writing instruments that preceded texting, IMs and email?).

The power of a handwritten note these days is phenomenal. When was the last time you got one? It may have been months ago, but you probably remember it. If you can’t remember, it’s a good indicator of how big a differentiator this could be for your financial institution.

Just because more people don’t have the time or don’t like going to a branch doesn’t mean they don’t appreciate personal attention. If someone signs-up for a new product through your non-branch channels, you should send them a hand-written thank-you note. In fact, it’s probably even more important to do this with these customers because you don’t have as many chances to showcase your personal touch. Embrace every opportunity to build those relationships with your remote audience. They are rare. Take advantage of them.

Pick the right new media tools

You might assume that people who don’t like going to branches are online omnivores — that they prefer… nay, that they crave all their interactions to occur through sites like Facebook or MySpace. But you’d be wrong. They may like to consolidate their personal relationships at online social media sites, but that does not mean they want to be friends with your financial institution. And blogs will only reach a small fraction of your total audience.

There are other new media tools your branchless patrons might use though. Those are going to be the ones that help them when they have questions, needs or problems. Wachovia’s use of Twitter is an excellent example. There’s also realtime online chat, available 24/7 from fulltime employees at Airforce FCU. If you’ve never seen it in action, go check it out.

Maximize your points of contact

There are only have a handful of ways you can communicate with your branchless users. So how can you best utilize those touchpoints to build relationships with them? What opportunities exist within your online banking experience, your statements and your email marketing? Do these exist merely to fulfill a functional purpose? Are you only using these channels to sell people more stuff? Or are you looking for ways to use these to create a deeper level of engagement and dialogue?

What do you think?

What are some of the ways financial marketers can deepen relationships with people who seldom — if ever — step foot in a branch?

Here are this week’s stories of interest from around the web.
Click hotlinks for the complete story.

Way2Save: Wachovia’s “rounded savings” program yields over 1,000,000 accounts

Grow Green: Wachovia creates two LEED prototypes for future expansion

Marketing Anatomy 101: A look at How CitizensBank does it

Big Yawn: Who said banking needs to be boring?

Rising Stars: Citi cultivates sponsorships with sports stars of tomorrow

Who Needs This??? Bank introduces ATMs that spit out coins

Filene just released an interesting study called “Who’s Joining Credit Unions.” Of particular interest is data that suggests a paradox between how people feel about branches and how they actually use them.

While credit union members think they need a branch nearby, the data tells a different story. According to the report, the majority of credit union members use a branch once a month or less.

Despite their low usage of branches, they want more of them. When asked what would improve their experience with their credit union, members’ #1 answer was “More ATMs.” The #2 answer: “More branches.”

Key Question: What the heck is going on here?

Branch and ATM convenience can’t be the only way to win deposits…can it?

Do people only want the perception of convenience?

To take a trip to a branch once a month (or less) doesn’t seem like that big an ordeal, even if it’s over five miles. There are plenty of people who drive further than that to go to Home Depot or Costco once a month. Heck, there are plenty of folks who drive five or more miles to get a coffee from Starbucks.

Key Question: Does branch and ATM convenience apply to people looking for loans? Or does it only apply to depositors and transactors?

Perhaps the problem lies in the type of question we — as financial researchers — pose to people. Give them a choice and they seem to say, “Hey, it doesn’t cost me any money when you build more branches, so go for it. Give me some more.”

What do you think? What’s going on here? Can you explain it?

Key Takeaway: If you don’t have a large branch presence — and most financial institutions don’t — your marketing needs to stress your delivery-channel alternatives to branches and ATMs.

Other insights from the Filene report:

• Credit unions look to have the most success targeting families with household incomes between $70,000 and $130,000.
• Friends and family continue to be the #1 way in which people hear about a credit union. Essentially, one-if-three new members come from the referral of a friend of family member.
• For credit unions with an open charter, one-in-16 new members are enticed by a newspaper ad. Around one-in-ten people learn about their credit union by driving by. One-in-100 come from the internet.

You can download the entire report from Filene here (registration required).

Here are this week’s branding and marketing stories of interest from around the web.
Click hotlinks for the whole story.

Texas Twins: Similar Gen-Y programs raise tough questions

What’s Behind All This Growth? Credit unions add 1.6 million members

Reaping ‘Rewards’: Bancvue checking product boasts $5.5 billion in deposits

Bee Good: Credit union serves free honey-flavored ice cream to save the bees

How To: Making a powerful financial brand

Driving Sales: Auto loans are hot as car makers cut leasing programs

2nd Generation: Bank switches names back to ‘Generations’

Pledge of New Allegiance: Illinois bank to become ‘Legence’

MembersProject.com: AmEx introduces contest for charitable ideas

School of Rock: CU’s financial literacy program rocks high schoolers

It’s a Wrap: BofA draws attention to wealth management with NYT ad wrap

Vishing: Are you ready to protect people from this latest security threat?

Op Ed: LA Times bemoans loss of marble and mahogany branches

Hawaiian Cafe: Credit union puts in a sofa and a “gourmet coffee bar”

When BankWest in Australia expanded to the East Coast, they redesigned their BRANCH PROTOTYPE and gave it a total makeover. To tout their new retail stores, the bank put a neat, interactive flash tour on its website.

The tour includes 11 different “hot spots.” Pause your mouse on a hotspot and it reveals some little tidbit about the branch.

These stores should fit nicely with BankWest’s brand theme, “Happy Banking” (previous coverage from The Financial Brand here). If you haven’t seen their outrageous TV spots, you should definitely go check them out.

To give you an idea of how far BankWest takes “happy,” they are the “Official Happy Partner” for the 2008 Australian Olympics.

Also supporting their “Happy Banking” theme is a novelty microsite that defies explanation. It must be seen to be believed. (Hint: Singing kittens are involved.)

Now the bank has a branch model that fits right in. While the branches don’t ooze “happy” as much as the rest of the brand, there is a general perky cheer to the design.

They should put out Skittles in candy dishes for customers. They could call them “happy pills.”

:60 seconds on BankWest’s new East Coast retail stores:

• BankWest ditched traditional teller bays in lieu of cash recyclers, which allow more freedom of movement within the store for both staff and customers.
• BankWest refers to its new branches as “stores” as they will be retailing non-financial merchandise such as money boxes and financial books.
• Meeting spaces have been designed with movable walls so that more space can be created in the store for customer seminars.
• Traditional bank branches are often quite masculine, sterile places. The new design incorporates more earthy tones with wood and cork flooring and feature lighting. Or, as the interactive tour puts it, “Warm, friendly colors, not traditional bank colors.”

Source: The Bank Channel

The brand identity for Bangor Savings Bank illustrates many important principles of financial branding.

Consistency, for starters. Bangor always uses the same fonts and the same colors: blue and light beige. This makes it easier to spot something from Bangor Savings Bank and creates familiarity, whereas a constantly changing look confuses people and undermines awareness.

Bangor Savings Bank stays focused. They don’t send a wide and varied range of messages out to the market. They concentrate pretty much on one topic: Free ATMs. The bank is much more likely to get traction by sticking with one simple yet highly relevant message. How often do you see an ad with only one bullet point?

Even their ATM card reinforces the “free ATM” message. What kind of marketing message could you include on your plastic products?

They consistently deploy their identity across all touchpoints – branch, web, print, etc. This helps create a cohesive brand, one where all the parts feel like they go together. That way, there’s no surprises when someone switches from one channel to another.

Note: They allow dogs in their branches. Kudos.

Bangor Savings Bank produced “Maine Tracks,” a compilation CD of alt-country and indie-rock musicians from Maine. The bank gives the CD away to show how it supports Maine’s creative culture. That, and because it’s just kind of a cool thing to do.

Bangor Savings Bank created a brochure all about their brand, which is increasingly common these days. The brochure’s primary audience is presumably employees (both current and future).

There is a secondary palette of brand colors – including contemporary hues like melon and pumpkin – to help visually categorize information.

Here’s a couple of 30-second TV spots where two people with different personalities, different likes and different dislikes agree on one thing: Bangor Savings Bank.

Bangor’s brand identity is the work of a company called Forge. Forge won the account in a review including two other agencies. In the pitch, Forge showed the bank a video it secretly shot in Bangor branches. The video connected with the CEO, who jumped up during the presentation and said, “Yes! That’s It. These people have got it right.”

“Wait. That’s it?? All these months and all we get it three words?”
– John Edwards
Chief Banking Officer
Bangor Savings Bank

At the first presentation of creative materials, Forge opened with the new slogan, “You Matter More.”

Bangor’s Chief Banking Officer recalls thinking, “Wait. That’s it?? All these months and all we get it three words?” That’s the irony of branding. There’s a million pieces of input on the front end, and comparatively little visible output on the back end. Successful brands keep it short, sweet and simple.

Tip of the Hat: To Ron Shevlin, for pointing Bangor Savings Bank out to The Financial Brand.

Identity Crisis: Creating a great credit union logo

Patronage Dividends: A great CU difference to tout

Save@YouTube: FNBO hosts “Savings Goal” contest on YouTube

Viva la Brand: Aviva, an international insurance provider, rebrands

Storm Clouds: Federal judge puts smackdown on community charters

Court Adjourned: Commerce name is out, ‘TD Bank’ is the new moniker

Eco-Branch: Canadian CU develops green+tech prototype

Pennies for Change: Credit union members can give 1¢ per debit to United Way

Greener on the Other Side? Coastway CU proposes bank conversion to members

Busted: Aussie bank fined over misleading ads promising big giveaway

Yours Truly: Thank you notes for new accounts signed by a credit union CEO

Looking out 10 years at the landscape of financial brands, what will we see? Here’s six trends in this two-part guest post from The Financial Brand over at OpenSource CU.

Read Part 1

• Prediction #1: More of the same
• Prediction #2: More self-deception about service
• Prediction #3: More me-too names

Read Part 2

• Prediction #4: Traditional branches will thrive
• Prediction #5: Innovation will come from extensive R&D
• Prediction #6: Being green won’t make a difference

Marketing Stimulus: $152 billion in IRS stimulus payments present opportunities

Seriously Schooled: Credit union runs 11 school branches…and plans to add 10 more

CMO+SEO: Wells Fargo buys Google search ads to support offline campaign

Mobile 2 B.C.: Two British Columbia credit unions add mobile banking

Aussie Outlook: A global perspective on branding challenges facing financial insitutions

“The challenge is that most banks have a long legacy of product-centric, ‘everything for everybody’ ways of thinking. This leads to decision-making and resource commitments that reinforce ‘better sameness’ rather than true differentiation.”

– Frank Capek

A high school sophomore won a $50 prize for coming up with the new name for the St. Vrain Valley Credit Union’s student-run branch at a local high school.

In this article, the winning student said she thought a long time about a name and eventually imagined that “all the students are little eaglets coming to their mom for money all the time.” In her school setting, the credit union branch serves the same purpose as the mom, she said, so she came up with the Falcons Nest.

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