Here’s what’s been making the news in the financial industry lately.
Click on the hotlinked summaries to read the full story.

Buh-Bye Big Bank: 30-40% of customers at Chase, BofA, Wells and Citi may leave

Funny + Money? Should bank advertising make you laugh?

Raw Data: JD Powers 2009 Retail Banking Satisfaction Study

Campaigning for Trust: Banks will could learn a thing or two from political tactics

Not If, But… When will your credit union join the Twitterverse?

Millionaire for a Day: Two boys win $1M from credit union, keep $41 in interest

Net Detractors: Aussie financial institutions have horrible Net Promoter scores

Sensory Overload: Too much clutter in your branches?

Here’s what’s been making the news in the financial industry lately.
Click on the hotlinked summaries to read the full story.

Actions or Words? Ads say “Strong Bank, Powerful Leaders,” but the president quits

Hospital Discharge: Bank kicks credit union out of hospital

The Letter F: Marketing expert gives bank’s letter a failing grade

Don’t Bank on It: Delighting customers isn’t a winning strategy

YMCA vs. Credit Union: A critique of two ads in the same paper

No You Can’t: Bank sues credit union over “Yes You Can” slogan

Ads Yanked: Credit union pulls ads with a slogan that got them sued

The Uglification of WaMu: Seattlites moan about Chase branch changeouts

Retail Branches? Brand Republic explores the pros and cons

Slashed: $500 million from Amex global marketing budget

Virgin Territory: Sir Richard Branson plans to launch a bank on the internet

Indirect Losses: Shuttered dealerships cost credit unions key lending stream

The Edge: DATCU’s new Gen-Y website/promo

Risky Rebrand: Satander to kill off 3 big U.K. financial brand names

Brand a’kilter: Scottish credit unions look to shake “poor man’s” image

Thrifty Ways: One in five are ‘Active Savers,’ half learned while young

[Editor's Note: This is a follow-up piece to yesterday's article from Freddy J. Nager, "The post-WaMu blues: Chase has lost ‘that lovin' feeling." Chase just recently completed remodeling WaMu's branches which has triggered an outpouring of emotion from former WaMu customers and employees. This will likely be the last story about WaMu here at The Financial Brand.]

The Financial Brand hopped on Twitter to see what people were saying now that the WaMu brand has almost been fully devoured by Chase. If you don’t yet “get” Twitter, don’t worry. You’ll get a sense of why it’s important after reading this, even without any prior experience with the popular social networking tool. Here are selected excerpts from a day-long scan of tweets mentioning “WaMu” (the bank, not the radio stations with the same call letters), which included about 30 in all:

WaMu is becoming Chase. I am becoming annoyed.

@KiltedDad (Seattle, WA)

In case u didn’t know, WaMu sucks now!!!

@dubyabejay (Seattle, WA)

my local wamu is now a chase bank. boo!
I liked the wamu brand

@bensonlee (National City, CA)

WAMU now Chase - you really screwed up. As a small business owner you really screwed us. Customer lost.

@enjaysauce

Looking to switch banks. I loved Wamu dearly,
but Chase is not cutting it for me!

@kgandstuff (New Jersey)

The Chase makeover of the Seattle WAMU branch is fugly. Time to switch banks.

@evermeire (Seattle, WA)

WAMU/Chase just lost a customer today. I loved the customer service at WAMU. So sad that it went away with the name.

@PlumCrazyRE (Duvall, WA)

You don’t have to know how Twitter works at all to find such an outpouring of emotion over the loss of a financial brand fascinating. These are people who took time out of their day to share their feelings with their friends (called “Followers” in Twitter)… about a bank. And these aren’t whacked out nut jobs, or digruntled Gen-Y types with nothing better to do. These are regular people.

Key Question: Would people mourn the loss of your brand if it went away? Would anyone pen a eulogy in song for your brand? Has any common consumer ever voluntarily mentioned your name and the word “brand” in the same sentence?

You’ll notice that four of the seven tweets above come from people in the Seattle area. If you are in sales or marketing with a financial institution in Western Washington, wouldn’t you be interested in reaching out to these people?

@coachandrew Have you ever considered switching to
[your bank]? We’d love to have your business. Send me
a message and I’ll give you a call.

Think about it. Four people a day, 365 days a year. That’s over 1,400 qualified leads a year. And we’re only talking about monitoring Twitter for conversations referencing one financial institution. Here’s the key thing: These people are at that critical moment when inertia in their financial relationships is weakest.

Using the advanced features at search.twitter.com, you can perform super robust scans of Twitter conversations. You can look for people who are talking about “banks,” “fees,” “switching,” “WaMu,” “Chase,” “BofA,” “Wells Fargo,” or any number of your competitors. You can limit your search to a targeted geographic area. You can even search for people who have a negative attitude. And the best part is, you can automate your Twitter searches, like this RSS feed that will give you almost-realtime updates for people mentioning “WaMu” within 100 miles of Seattle.

What makes this particularly interesting is that Chase has an active Twitter account. They use it around three times a week. But they don’t talk to- or acknowledge anyone. Why aren’t they in Twitter playing a little defense, responding to people’s questions and concerns?

Compare these tweets for Chase (shown left) and Bank of America (shown right). Again, you don’t have to know squat about Twitter or how it works to tell who is using the medium more effectively.

Chase vs. BofA on Twitter
Notice @chasebank only publishes a one-way, self-serving stream of tweets,
while @BofA_help is actively engaging other Twitter users with “@ Replies”
(a way to respond to a specific person directly in Twitter). Also, notice the highlighted
tweet in Chase’s Twitter stream making the announcement that “Chase is now in California.”

[Editor's Note: Look for an upcoming report on Twitter from Jeffry Pilcher, publisher of The Financial Brand. The report, titled "A Comprehensive Guide to Twitter for Financial Professionals," will be available for purchase through Online Financial Innovations, publishers of the Online Banking Report and Netbanker.com. Send an email if you have any questions or would like to reserve your copy today.]

By Freddy J. Nager
Founder, Atomic Tango

So my longtime bank, Washington Mutual (WaMu), recently got taken over by megabank Chase. ‘Twas a sad day for us WaMulians, because, for all its faults — and it had a few — WaMu was a friendly place to bank, with everything from chirpy messages on the ATMs to free candy at the teller windows. What wasn’t to like?

WaMu was expanding rapidly nationwide without losing its character. But WaMu’s execs decided to join the greedheads in quaffing some subprime Kool-Aid. We all know what happened after that… With WaMu on the verge of failure, along came a monster of the financial deep — Chase — to swallow it up.

“I’ve penned some
new lyrics to a classic
pop song that will
no longer be heard
in our bank…a little ditty
I call ‘The Post-WaMu
Chase Blues.’”

– Freddy J. Nager

We WaMulians sighed, but were still hopeful. Perhaps Chase would recognize what a great brand they had in WaMu, and would simply clean up its finances and keep it going. But it was not to be. The name was changed to Chase. And that’s not all…

The other day my wife and I strolled into a Chase branch. It was like entering the tomb of the unknown banker. WaMu’s bright yellow had been covered in deep corporate blue, and the flamboyant posters that once hyped WaMu’s services had been replaced by… blank walls.

The tellers who once wore casual shirts were now suited up. We guessed all this was to convey how solid and dependable our bank had become — but, uh, yo, East Coast dweebs, we’re all like laid-back Los Angelenos, you know? And we still vividly remember how Wall Street was like totally screwed up by men in conservative suits — men whose enormous badness made those Somali pirates look like shoplifters, right?

So, instead of instilling us with confidence, Chase’s ultra-corporate vibe just depressed us, and we couldn’t wait to leave the premises. Sorry, teller dude, but no thanks, we don’t have time to discuss your credit card offer…

Most striking of all was the silence.

It was like being in the public library of the undead. We felt compelled to whisper. And that’s when we realized there was no more pop music playing over the speakers, as there always had been in WaMu. Yes, the day when WaMu became Chase was also the day the music died.

In honor of this transformation, I’ve penned some new lyrics to a classic pop song that will no longer be heard in our bank. So with apologies to the Righteous Brothers and their hit “You’ve Lost That Lovin’ Feelin’,” here’s a little ditty I call “The Post-WaMu Chase Blues.”

“The Post-WaMu Chase Blues”

When you bought WaMu
you said everything would stay the same.
Then you spent 300 million
to redecorate and change the name.

You took a big happy bra-and
Then Chase-y, you done made it so bla-and…

CHORUS:
You lost that WaMu feeling.
You’re now just walls and a ceiling.
And that is so unappealing.
The fun is gone… it’s… wrong… whoohoo-not

Now your tellers wear suits
and no music ever fills the air.
Your vibrant colors are gone
and your once postered walls are bare.

It makes us all feel like snoozing
Oh Chase-y, don’t you know what you’re losing?

CHORUS:
You lost that WaMu feeling.
You’re now just walls and a ceiling.
And that is so unappealing.
The fun is gone… it’s… wrong… whoohoo-not

Chase-y, Chase-y, we still have all our savings with you.
If you would only please us — at least tease us — like WaMu used to doooo.
You had a brand… so grand… that millions of us came to adore.
And now… somehow… you think “trustworthy” means being a bore.

Oh Chase-y (Chase-y), Chase-y (Chase-y)
We beg you please… please,
Give us WaMu (give us WaMu).
We miss WaMu (we miss WaMu).
So bring it on back (so bring it on back).
Bring it on back (so bring it on back).

Bring back that WaMu feeling.
Its loss has sent us reeling.
Our souls are now congealing
‘Cause your brand… is… cold…
and it feels… so… old…
And we’re totally… not… sold…

Whoohoo-NOT.

[Editor's Note: This story originally appeared on the 'Cool Rules Pronto' blog. It is reprinted here with permission by the author, Freddy J. Nager, Founder & Fusion Director of the L.A.-based strategy agency and production company Atomic Tango.]

Here are some of the more notable or interesting TV spots that The Financial Brand has run across in the past few weeks. (Please note: there are many YouTube videos embedded in this article.)

Chase - “Blue Sky”

Having successfully eviscerated WaMu’s branches, Chase is proud to announce its arrival in California with a spot featuring a high-energy cover of John Lennon’s “Instant Karma! (We All Shine On)”. The ad paints a pretty cliché portrait of California, including beaches, surfing and shades of Easy Rider. Chase has been using nothing but black-and-white brand imagery for around a year, but in this spot, it makes California look drab, dreary and depressing - completely the opposite of what they were shooting for.

E*Trade - Where’s the Baby?

E*Trade just rolled out three new TV spots last week that are very descriptive and very average. The reviews on YouTube haven’t been kind. The question everyone wants answered: Where did the E*Trade baby go? You can see the other two spots (that look pretty much exactly like this one) here and here.

OnPoint Community Credit Union - “Coming Home”

Weber Marketing Group just made two new brand spots for OnPoint. These professional and well-produced spots do a good job of blending brand themes with products and services. You can see the other spot, “Furniture Store,” here.

St. George Bank - “Lullaby”

A huge crowd of St. George Bank employees gathers outside an average Australian man’s house as he retires for bed. They hum him a lullaby. The announcer explains, “At St. George, every single one of us is working to make sure that the things that keep you up at night no longer do.” The man sleeps blissfully.

First Tennessee - “Buttons”

The small buttons on a wedding dress become a metaphor for the little details that make up people’s big dreams. This is one of three spots in a touching series of lifestyle vignettes. However, the connection between what the spots are depicting and what the bank offers isn’t readily apparent. They are just mostly “feel good” brand ads. The other spots can be seen here and here.

TD Bank - “Computer”

TD is sticking with Regis and Kelly Ripa in their latest TV spots. In the first, the TV talk show hosts try to interview a talking computer from a competitor bank. The computer has zero personality, which frustrates Regis to the point where he walks off the set. The announcer says, “At TD Bank, you get a real person 24/7, 365 days a year.” The “Computer” spot is better than “Owl,” where Regis and Kelly share the stage with an owl, who — as a nocturnal creature — would bank at TD since they are “open late.”

RaboPlus - “Always High Interest”

These ads for RaboPlus, a bank in Australia, feature strange, faceless animated beings that look kind of like aliens. Here’s another one.

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The largest single collection of TV spots exclusively from financial institutions can be found over at The Financial Brand’s YouTube channel. There are over 100 commercials with more added every week. It’s a great resource if you’re looking for inspiration, or just want to see what other people are doing in the financial industry.

It’s been known for months that JP Morgan Chase planned to replace Washington Mutual’s innovative retail branch design with a much more traditional model. Now that the changes are actually being implemented, the failed thrift’s approach to branching is again being called into question.

In a recent Wall Street Journal story, Charles Scharf, the CEO of JP Morgan Chase’s retail financial services unit, said traditional branches “are superior in every way.”

Wrong. Just because WaMu collapsed does not mean its branch design was inferior. That’s a fallacious, oversimplified inference (something The Financial Brand pointed out earlier this year).

Reality Check: Chase’s branch model isn’t superior to WaMu’s. Using Scharf’s own words, Chase branches are more accurately described this way: “They might be boring, but they’re practical.”

“Traditional branches are
superior in every way.
They might be boring,
but they’re practical.”
– Charles Scharf,
CEO/Chase Retail Banking

WaMu rolled out its retail branch design with great fanfare in 2000, and used the new model as they moved into new markets such as Las Vegas and Atlanta. Later they remodeled existing branches to incorporate the new retail features. Before WaMu collapsed last September, they had spent roughly $1 billion on a branch-building binge.

Key Questions: Why would Chase want to spend millions undoing everything WaMu had taken $1 billion and 8 years to accomplish, despite a company-wide push to cut costs? Why would Chase basically drag the WaMu branches back to the past?

Actually, from Chase’s perspective, the argument to overhaul WaMu’s branches makes sense. For starters, it’s obvious why Chase would want to sanitize branches of all evidence linked to the largest bank failure in history. It’s also clear why Chase would want to standardize operations and create a consistent brand experience with one, basic branch delivery model.

But the real reason Chase needs to remodel WaMu’s branches is that the two banks had totally different business strategies.

It boils down to these two fundamental differences: (1) Chase offers small business, and (2) Chase offers private-banking services. WaMu never did.

Operationally, these two components of Chase’s business model necessitates branches with certain elements. WaMu branches branches were never designed to accommodate merchant services, nor did WaMu’s branches provide the degree of privacy required for a highly-consultative private banking audience. That’s because WaMu was a retail bank. Chase may offer retail financial services, but it’s a commercial bank at heart.

WaMu, as retail bank, was quite successful…at least from a branding perspective. The thrift did everything it could to distance itself from other competitors in the crowded retail financial space. It ran ads touting how WaMu was different as they made fun of bankers. They changed their name from Washington Mutual to WaMu.

WaMu new who it was and knew how to build its brand. That meant coming up with their own branch design and breaking away from traditional branch offices donning stark decors and staff tucked safely away behind bullet proof glass.

Which is exactly what WaMu did when they introduced their “Occasio” branches. Occasio locations were stylish retail operations that didn’t feel much like a bank at all. They did away with the traditional teller counter and windows. Customers were greeted by a concierge, and dealt with tellers at free-standing “pods” that resembled tall bar tables.

Occasio broke down not just the physical wall between customer and teller, but also a psychological wall. It put the service rep side-by-side with the customer in a casual, conversational atmosphere. And without ever making security an issue.

Latin for “favorable opportunity,” Occasio became such a symbol of pride for WaMu’s brand that they trademarked the name and got a patent on the branch design, reportedly the first patent for a store concept in history.

The branding was brilliant. The business model (risk management notwithstanding) also made a lot of sense. Occasio branches were designed to be high-speed transaction centers — no waiting, no lounge, no sofas, no chairs for tellers necessary. No need to sit down. Get in, get out.

WaMu’s branches took in a high volume of retail deposits to fuel their home lending operations. WaMu handled home lending through regional offices. (With big, one-time purchases — like a home loan — consumers are a lot more willing to drive 20-25 minutes). WaMu’s low-cost transaction centers helped them achieve their business objectives by feeding regional lending offices in a hub-and-spoke system.

Bottom Line: WaMu’s branches worked…for WaMu. Chase is talking up their more traditional branch design because that’s what they know and what works best…for them. Every financial institution needs to find its own unique branch delivery model — one that compliments their brand and business strategies. That means carefully engineering an experience while balancing your privacy and security concerns.

Further Reading: John Ryan, one of the world’s leading financial architectural firms, published a blog post about Chase’s decision to kill WaMu’s branches just yesterday.

“Deposits are the lifeblood of banks.”
– Bob Chapman, President
Bank of the James

These days, you hear about a lot of financial institutions seeing huge increases in their deposits. Some financial institutions are seeing their deposits double over last year. Even JPMorgan Chase, an international megabank, was able to take in an extra $87 billion.

Reality Check: Now is not the time to pat yourself on the back. Everyone’s deposits are up (well, not everyone, but most). This is money just walking in the door.

A survey last fall by the ICBA showed that 70% of community banks were seeing deposits grow year-over-year. More than a quarter of the banks surveyed saw deposits grow by at least 11%. And a recent survey by CUNA found that one-fourth of credit unions were enjoying above-average growth.

One in five people said they were likely to move at least some of their funds to another institution soon. Nearly one in 10 were likely to move all their money.
– Nielsen survey

Key Fact: In a recent Nielsen survey of 3,000 consumers, one in five said they were likely to move at least some of their funds to another institution in the near future, with nearly one in 10 likely to move all their money.

Key Questions:

• What are you doing to keep your existing deposit base from defecting to other financial institutions?
• How much more could you be gaining if you had an aggressive deposit growth strategy?
• What are you doing to retain your newly-won deposits over the long term?

Both Mark Zandi, chief economist at Moody’s Economy.com, and Cam Fine, chief executive of the ICBA, both agree: The movement of money we’re experiencing in the financial industry is something we haven’t seen since the Great Depression.

From August to September last year, bank deposits rose by more than $158 billion, as investors yanked money out of stocks, bonds and failing financial institutions. $50 billion poured out of the stock market in the month of September alone. Where did people put it? In the relative safety and security of liquid deposits.

“People are panicked, and they want something as close to the mattress as they can find,” says Moody’s Zandi.

And that’s why many institutions are touting their financial strength.

“Banks’ emphasis on safety certainly scratches where it itches for consumers in this current environment,” says Greg McBride, a senior analyst at Bankrate.com.

McBride says deposits have always been a competitive business for financial institutions. But at a time when bank capital has been whittled away by loan losses, and banks are scrambling for low-cost funding, growing deposits has become more important.

That certainly helps explain why competition for deposit dollars has become as fierce as its ever been.

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

Credit cards linked to Fidelity, Schwab accounts

Fidelity and Schwab recently introduced new credit cards on their respective public sites. Instead of offering clients points for merchandise or cash back, the cards each give clients with 2% back on all spending - money which is then deposited directly into an investment account at the firm. The Fidelity card carries a 16.99% fixed APR while Schwab instead offers their card with a variable APR of Prime + 9.99%

Chase dumps WaMu’s branch model

WaMu’s Occasio branches popularized teller pods, adding a level of side-by-side intimacy to what is otherwise a pure, high-efficiency transaction center. This model doesn’t suit Chase, who just took WaMu over. JPMorgan Chase plans to offer more small business, mortgage and private-banking services, which doesn’t jive with the lack of private spaces in WaMu’s Occasio branches. Chase’s more traditional layout offers more privacy for bankers to meet with customers than Occasio’s more open floor plan. To make everything consistent — both from a brand and an operations perspective — WaMu Occasio branches will convert to Chase’s traditional branch layout.

Credit union uses Harley the Chihuahua as spokesdog

The spokesperson for Beacon FCU in Texas is no person at all. It is Harley, a motorcycle-riding Chihuahua. The spokesdog, who belongs to one of the credit union’s branch managers, has appeared in several newspapers and magazines including the Houston Chronicle.. At an annual member-appreciation event, the hot attraction was Harley’s photo booth, where she was in full Beacon gear with a Beacon t-shirt, pink riding helmet and riding goggles. “Harley gets excited as soon as she hears the roar of a hog,” Harley’s handler said.

Nothing smelly about this credit union

EPB Employees Credit Union recently ran an ad that read, “Absolutely no credit crunch here! We have plenty of money to lend! No ‘bailout’ needed. We’re stronger than 40 acres of garlic!” That’s good stuff.

Investment bank willing to pay over $250 for new logo

A small investment bank’s classified ad at GetAFreelancer.com called for something “professional, stylish and nothing outlandish.” The average bid from designers responding to the ad was $334, even though the bank said it was willing to pay a $250-$750 for its new identity. You have to wonder how strategic a process this is. What kind of criteria do the designers work from?

Remedial lessons on deterring robberies

Put up a sign that says “No hats. No sunglasses. No hoods.” That was one of the the suggestions offered by a risk manager in a CUNA article. He also suggested making would-be robbers wait in line. That, of course, means you’ve got to make everyone wait in line. Another suggestion: Make sure security cameras capture all the angles.

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.

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.”

October 2008 was one of the roughest ever for the financial industry. Now that October has passed (and thankfully so), let’s take a minute to look at some of the ads banks and credit unions ran as the global financial crisis developed.

US Bank - “Roots”

The headline on this full-page ad from US Bank is awkward. The periods in “U.S.” and the overuse of the word “bank” make the headline choppy. Simply using “Bank Solid” would have been enough. Readers understand the implicit call to action: “You should be banking at US Bank.” That’s why advertisers advertise.

The artwork is visually captivating and the metaphor is relevant, although there isn’t a strong connection between the ads’ components (headline, artwork and offer). It feels a little slapped-together, which it probably was. It’s not until you get to the first sentence of the body copy (people read ad copy?) that the “roots” connection is made. The copy also promises a “guaranteed rate of return” on CDs, something BofA has started emphasizing in its ads as well.

Including product offers in your “safe and sound” message is smart. It doesn’t seem practical to run a pure image ad right now — one whose purpose is to simply reassure customers. That kind of ad doesn’t really work to build the brand as much as it “stops the bleeding.”

KeyBank - “Proven Over Time”

Any bank could run this ad. All you have to do is change the year in the first sentence of the body copy and swap out logos.

Banks run ads like this all the time. Some banks even run this kind of ad one day, then fail the next. People read this kind of stuff and roll their eyes. Why not provide more proof for the otherwise unsubstantiated claims like “proven over time” and “well-capitalized?” If you’ve got a cap ratio worth bragging about, why not explain it to people? And don’t use the excuse, “They don’t care,” or, “They won’t get it.” The typical American consumer isn’t as dumb or disengaged as you think. She is your wife, or your dad.

Using Moody’s and S&P as “proof” of your safety and soundness won’t fly with those who have been paying attention to financial news lately. These ratings’ agencies are the same bozos who gave triple-A grades to all those toxic subprime mortgage-backed securities.

Sterling Savings - “Really Boring”

This ad is great. Sterling is mixing product offers with its “safe and sound” message. The irony is that the bank says it is boring and predictable without being boring or predictable. This ad shows how you can convey a “safe and sound” message without having to surrender any sense of personality your financial institution may have. Temporarily renaming products “The Really Boring [X]” is brilliant.

Power Financial - “No Bailout Needed”

This ad for Power Financial from the marketing folks at Shared Idiz shares a similar strategy with Sterling Savings. The ad introduces the “safe and sound” message in a way that connects with people on a visceral level; things like corporate jets really rub the average American consumer the wrong way.

Again, it’s smart to include product offers. This is one of the few ads out there promoting lending (home equity and auto) as part of the “safe and sound” strategy. As previously noted at The Financial Brand, saying you’ve got money to lend in the middle of a credit crisis is one of the most effective ways to differentiate your financial institution while suggesting you’re healthy and strong.

WaMu + Chase = “Peace of Mind”

The headline on this ad from WaMu raises one big, implicit question: Didn’t WaMu checking accounts come with peace of mind before the takeover? It’s the word “now” that triggers the scrutiny. You wouldn’t wonder what was previously wrong with WaMu if the headline simply read, “Free checking. With free peace of mind.”

The body copy in this ad is pretty good. Too bad no one reads ad copy anymore though. If you’re one of the few who does, click on the ad to enlarge it.

ING Direct - “Manifesto”

As usual, ING Direct is taking its own unique direction on the financial crisis. Recognizing the public’s shift from credit-based spending to thrift-based savings, ING Direct is seizing the opportunity to tell its brand story in one of the most unique ads ever to come from a financial institution.

Netbanker reports that over 5,300 people have gone online to “sign” this “manifesto” at a special wethesavers.com microsite from ING Direct.

Tip of the Hat: To my dad, for mailing all but one of these ads to me.

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

National City’s rivals planning feast

If you aren’t already full from heaping servings of fearful WaMu and Wachovia customers, grab a steak knife and dig into the next course being served at the failed-bank buffet: National City. PNC announced last week that they will be acquiring the struggling Cleveland-based bank. (Is it too late for National City to scrub its recently announced sponsorship of the Detroit Pistons next year?)

Get ready for a bigger Navy

Navy FCU, world’s largest and most formidable credit union, will more than double its number of branches in the next three years. It now has 161 branches in major Navy and Marine Corps hotspots, but will have 330 by 2012. (That requires a ton of capital.) Earlier this year, Navy FCU expanded its field of membership to include all branches of the military, and its branching plans are to court its new potential members. Navy Federal was growing rapidly even before it broadened its membership. It opened 34 new branches in 2007 and expects to open 21 this year.

Everyone will offer remote deposit by Christmas

Okay that’s an exaggeration, but is Celent’s latest report any more believable? They say 40% of all banks and credit unions will offer remote deposit capture by the end of 2008. That seems extremely optimistic, if not impossible.

Can you save money by spending?

Consumer Reports says no, despite all the hype. They took a look a look at BofA’s Keep the Change, Wachovia’s Way2Save, and One from American Express. The bottom line? People would do better with regular savings accounts and rewards programs tied to plastic products.

Bank in Mississippi says “konnichiha” (that’s Japanese for “hi”)

Toyota is moving Japanese employees to the town of Tupelo. Renasant Bank rolled out the welcome mat and ran some billboards that said “Welcome to Mississippi” in Japanese. The bank may be the first in Mississippi to incorporate Japan’s character alphabet into its advertising. Maybe Renasant should have been given a shot at offering the new Toyota Visa Rewards Card instead of US Bank.

San Diego sues WaMu for predatory lending

The city says WaMu the bank engaged in unlawful subprime mortgage lending practices. This isn’t the first lawsuit San Diego’s brought against a mortgage lender, and it isn’t going to be the last. The San Diego City Attorney’s office said his office will bring another lawsuit against an undisclosed home loan company this week.

Powder-laced letters mailed to Chase branches in 9 cities

More than 30 letters containing a suspicious powder were mailed to Chase bank branches and federal banking regulators’ offices in nine cities. The powder, it turns out, was calcium.

Here’s a new print ad running in WaMu markets that, considering the situation, is pretty darn good.

The ad’s copy reads: “WaMu has a bright new future, thanks to the stability of JPMorgan Chase (and their nearly trillion dollars in customer deposits). But Chase brings more than money to the party: together we have 14,300 ATMs and 5,400 branches nationwide, a quarter of a million employees, and the confidence of banking with over 100 million other customers.”

That definitely sounds like a bank that’s “too big to fail.”

Tip of the Hat: To Josh Streufert at Weber Marketing Group
for sending the ad along.

Here are recent stories of interest from around the web.
Click on the hotlinks to read the full story.

MELTDOWN FALLOUT

Marketing 180° “Credit” out, “saving” now in vogue as financial industry reacts

Another One Bites the Dust: Wachovia is the latest victim

Oh Canada: WIll one of the Big Six be next?

Chase+WaMu: Impromtu rebranding starts, ads planned

Stop the Presses: WaMu cancels all internet advertising

What the Meltdown Means: AdAge’s big directory of meltdown articles

FEATURE STORIES, OPINION & ADVICE

Interview: Wells Fargo’s Tim Collins is banking on social media

Gen-Y: A very meaty whitepaper and roundtable (PDF)

Insight: 7 videos to build your financial brand

Q & A: Massive interview with a Wells Fargo president

Not Dead Yet: But Barclays chief predicts the demise of plastic cards

Facetime: Video conferencing helps HSBC go green

NAMING

Bank X: This week your bank’s name is _____________ .

Sign Language: Blogger suggests bank needs a name change as it expands

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

Money for Guns: Chase gives away prepaid debit cards for unregistered guns

Credit Score: Consumer Reports’ 12 best and 3 worst credit cards

Duel: Comparing ING vs. E-Trade click-through rates

Essay Contest: Credit union holds $1,500 ‘What Do You Want’ contest

Image Problems: Aussie credit unions in the same situation as U.S. peers

Pedal Pushing: 7.99% bike loans up to $2,500

Q&A Interview: Barclays sees how sponsorships can open doors in the U.S.

More Gas: DFCU-style gas promo from a Montana credit union

Online Media: Citibank’s exclusive sponsorship of popular Aussie website ‘The Fix’

Going Swimmingly: Visa happy with Phelps endorsement

Up for Review: ING’s £4 million direct mail account

Va Va Voom: Female employees pose in bank’s pinup calendar

That’s an Outhouse! But the sign says “Future home of Auburn-U FCU”

How To: Avoid legal cow pies when rebranding

Text for Tix: Chase gives away US Open tickets via texting promo

Cash Cow Gets Plugged: Banks put stopper in home equity spigot

DeNovo: Investors pick strange time to launch Britain’s first new bank in 100+ years

Give Me 20: PSCU Financial launches financial education site for parents

No Waiting: Issue “flat” debit cards instantly

The Wedding’s Off: Two credit unions have no urge to merge

School CU: 200 credit unions have student-run branches, a 27% increase

Do Not Disturb: Lawyer says Navy FCU harasses member in bankruptcy

Cease & Desist: Credit union threatens defamation suit against YouTuber

Chase plans to spend $70 million in the next two and half months on the new “Chase What Matters Most” campaign.

The ads, in black and white, will promote the bank’s range of services including credit cards, student loans, retail banking, overdraft and fraud alerts.

In this NY Times article, Hayes Roth, the chief marketing officer at Landor Associates, a brand strategy firm, says “The promise of the bank experience is much like the promise of the airline experience. There is a lot of lovely talk — we’re here for you — but I don’t think anyone believes it.”

Reality Check: According to the article, “Consumers are increasingly anxious about their finances and skeptical of the customer-service sales pitch.”

Key Takeaway: The NY Times said it best. “Standing out from the pack is hard to do in banking; other than the interest rate, there is little difference between mortgages and home equity loans.”