The First National Bank – Dumpster Ad

Perhaps the most unusual media placement for a bank ad ever — inside the lids of garbage cans. They are literally throwing advertising dollars in the trash. Will consumers feel this kind of advertising is appropriate? Or will they snicker at a metaphorical irony that’s hard to escape?

IBT – Parking Lot Stencils

A creative reminder from Foundry Advertising that even seemingly insignificant spaces present branding opportunities.

Harborstone Credit Union – Lego Business Pieces

This business banking promotional kit comes from credit union marketing firm Jay-Ray. Each box contained a set of Lego building blocks and a mini-construction worker. Harborstone hand-delivered these boxed invitations to local businesses, inviting execs to attend the groundbreaking ceremony at a new Harborstone Credit Union branch.

First Community Bank – Enjoy Unbig

This brand advertising campaign is linked by a microsite with six games like the “Unbig Fun Maze!” and the “Unbig Crossword!” You can see one of the TV spots below, and the other three here, here and here.

Australian Central Credit Union – CG TV

A relatively simple-yet-effective 15-second spot for personal loans produced with computer-generated graphics.

Legacy Banks – Rebranded Identity

Ad agency Smith & Jones won a 2009 American Graphic Design Award for this rather conservative corporate rebranding.

Chase – Phone Tree

The copy says that “using Chase by Phone is easier than ever.” That may be, but the flow chart screams of confusion, frustration and lots of button-pushing. For a bank with trillions in assets, you’d think they could pony up a couple hundred bucks for a designer who knows how to use more than PowerPoint?

The announcement from JP Morgan Chase that its retail banking arm is giving away $5 million to charities via a Facebook promotion signals an emerging trend in how financial institutions allocate their corporate donations. By adding relatively simple and straightforward marketing components, financial institutions are transforming their charitable contributions into feel-good, name awareness promotions.

‘Chase Community Giving: You Decide What Matters’

In the first round of the Chase Community Giving program, Facebook users will nominate non-profits, then vote to determine which organizations will receive Chase’s philanthropy funds. The top 100 getting the most votes will receive $25,000 each, and will move on to the next round.

Chase Community Giving: You Decide What Matters

In round two, these organizations can submit a proposal for a $1 million grant. Facebook users will vote to pick the winner. The five runners-up will receive $100,000 each. Additionally, Chase will donate another $1 million to the charity of its choice.

“This innovative program unleashes the charitable passions of our neighbors, friends and colleagues to rally around the issues and organizations that are most meaningful to them,” said Kimberly Davis, President of the JPMorgan Chase Foundation.

Key Insights:

• This type of promotion taps the networking power of organizations that have mastered the art of grassroots campaigns. Non-profits excel at mobilizing their troops. With a bucket of money at stake, expect these organizations to do a lot of the marketing leg work for you.
• People who support causes and work for charities tend to be better educated, and anyone getting involved in this type of promotion will be online. They have to be. That’s where the voting takes place.

“Even though this is a Facebook-based program, we’ve already had over 100,000 visitors from Twitter alone,” the spokesperson told Marketing Daily. Keep in mind: This was accomplished without Chase ever sending one tweet. In fact, Chase is one of the few big banks that doesn’t even have an active presence on Twitter. The passionistas are tweeting for them.

An emerging trend

Chase joins other banks and credit unions who are opting to give consumers a say regarding what kind of charitable activities should receive monetary support. This year, Umpqua Bank included Click 4A Cause as part of its Save Hard, Spend Smart campaign, where every vote equaled a $1 donation to one of three charities, each competing for a $15,000 grand prize. Last year Wells Fargo held its Someday Stories promo with two parts: a competition among charities, and a $150,000 “dream fulfillment” contest for do-gooders to make their lifelong aspirations a reality.

Umqua’s ‘Click4aCause’ (left) and Wells Fargo’s ‘Someday Stories’ (right).

Reality Checks:

• This is money you are already giving away. Milk it for all its worth.
• For financial cooperatives like credit unions, this type of democratic approach should come as second nature.

“Every year, our company donates more than $100 million to non-profit organizations in local communities, nationally and abroad, and our employees dedicate countless hours of their own time to helping those in need,” said Jamie Dimon, Chairman and CEO of JPMorgan Chase. “The grassroots nature of Facebook will allow us to hear directly which local charities matter most to our communities, hopefully creating an even bigger impact.”

The $5 million Facebook effort from Chase is in addition to the bank’s traditional philanthropic giving. If successful, the bank hopes to allocate more of its annual philanthropy budget using these methods.

“We look forward to applying the learning from this program to future philanthropic endeavors,” said Chase’s Davis.

For Discussion: What are the downsides to this approach, if any?

Bottom Line: Some people may dispute the strategic brand value of charitable contributions, but if your financial institution is committed to giving money away, why not get the most out of it? Relative to the amount you’re donating, the added marketing layer doesn’t cost much. Engaging people around their passions while generating positive PR and word-of-mouth buzz is never a bad thing, right?

Tip: Let people vote as often as they like in these promotions. Do not cap votes at one per day or one per person. If someone wants to sit around hitting the refresh button on their browser all day, why stop them? Remember, you’re tapping a passionate audience.

Recommended Reading: Trendwatching’s “Generation G” (that would be “G” for “generosity,” not “G” for “greed”).

Click on the hotlinked summaries to read the full story.

On Hold: ING Direct’s entertaining pre-recorded phone messages

You Suck: Which U.K. bank gets the most complaints?

Freeze! FBI’s 2009 Q2 robbery data for financial institutions

Yucky Trend: Image of banks continues to plummet

eStatements: Raddon breaks down why consumers say ‘no’

Sausage & Mash: Who said ATM screens have to be boring?

Blog & Tell: Credit union contest seeks 225-350 word articles on anything

Shoptimism: Chase banking on shoppers with new Sapphire card

Prime + 14%: BofA’s new “Basic” credit card

Financial Literacy: American Banker outlines the business case

Self-Service Delivery: ABA says drawing from other industries has pitfalls

Financially Fit: Yahoo!’s financial ed site, sponsored by BofA

Overdraft fees are a prickly subject. Consumers complain about them constantly, and now more than ever, it seems they’re doing so with unregulated vehemence. On the other hand, financial institutions rely on fee income — it’s how they make money on deposits — now more than ever.

Consumers pay an average
of 18-24% on credit cards,
400-500% on payday loans
and 1,000-3,000%
on overdrafts.
– Columbia University

The New York Times reports that financial institutions stand to take in $27 billion in overdraft fees this year alone. The Financial Times puts the number at $38 billion. And this isn’t just a fee stream privy to banks. Credit unions pull in about 25% of the total haul — $6.6 billion in overdraft fees last year — while grumbling about “the regulatory burden” overdraft reforms might entail.

Financial institutions staunchly defend their policies, saying that it is ultimately each person’s responsibility to keep track of their own finances (which it is). But many of the other explanations they offer don’t settle well with consumers. For instance, financial institutions assert that larger items are processed first because those are frequently important items like the mortgage, even though most people know (or at least believe) that by processing the largest items first, a financial institution is more likely to trigger overdraft fees.

One of the more common arguments is that customers prefer their purchases be processed rather than suffer impromptu embarrassments.

Reality Check: Out of 2,023 adults polled, approximately 73% would prefer their bank decline transactions of $5 to $40 if it were to cause an overdraft fee. (Various studies are available as PDF downloads from an online archive.)

If you want to see how consumers feel and what they know about overdraft, just Google it. Or search Twitter. Or YouTube. It’s all over the news. And people aren’t bashful, as this f-word laden query with 391,000 results proves.

So despite all the explanations and rationalizations, financial institutions don’t seem to be fooling anyone. People don’t feel like financial institutions are doing them any favors with today’s overdraft tactics. No matter how many ways financial institutions try to justify it, what consumers are hearing financial institutions say is this: “We know this pisses you off, but we make a lot of money off it. You’re broke. We’re greedy. Too bad.”

Ouch.

Considering how angry people get about overdraft fees, it’s surprising how few financial institutions have attempted to offer any kind of alternative. Yes, overdraft fees may be a balance sheet necessity for financial institutions. But do financial institutions have to be so stereotypically defensive and uncreative?

Assuming overdraft fees are an inescapable reality, at least consider these few ideas (in order of increasing difficulty). Then feel free to suggest your ideas in the comments below.

#1 – Make Overdraft Opt-In

82% of those polled by Opinion Research want to choose whether overdraft protection gets added to their account or not. So why does the financial industry seem to turn a deaf ear, when many companies in other industries would rush to address consumer concerns? Some companies would feel fortunate simply to know what those concerns actually are.

Have you tried to find a checking account without overdraft protection these days? Instead of mandating “complimentary overdraft protection,” why not let consumers make a voluntary choice? Are financial institutions so addicted to overdraft fees that it will take an Act of Congress to make the service optional? Why wait?

#2 – Free Pass(es)

Some financial institutions are offering a free pass — a coupon, of sorts — that gives people one free overdraft. This type of “get-out-of-jail-free” card is becoming increasingly common with Gen-Y and student checking accounts, but why not implement it for everyone on all accounts? If you sent one in the mail to all your existing customers today, you be a P.R. hero tomorrow.

And if you’re going to make overdraft protection mandatory, why not give people one penalty-free opportunity to see how the system works?

Option: You could offer three lifetime overdraft fee passes instead of a single, one-time coupon good for one year.

#3 – Restructure & Reprice

There are options to the standard, flat $35 fee. Bank of America has started charging only $10 if you overdraft by less than $5 (hey, it’s a start). Chase has tiered overdraft fees, with the first one starting at $25 and rising to $35 for the fifth.

Some financial institutions have started capping the number of overdraft transactions that someone can make in a single day. BofA draws the line at ten, but most customers would probably prefer to cap overdrafts at three — no more than five. $300 (or more) in overdraft fees isn’t likely to be appreciated by most customers.

UPDATE: Right as this article was published, a New York Times piece broke a story, “Chase and Bank of America Revise Fee Policies.” From the article:

“Bank of America said it would allow current customers to turn off the ability to spend when their account hits zero, starting Oct. 19. Next June, the bank plans to limit the number of times each year that current customers can overdraw their accounts when using a debit card at a store. It will let new customers choose whether they want overdraft protection when they are opening their account.

“Chase plans to eliminate by the first quarter of next year a common industry practice that enraged many consumers. Instead of lumping a day’s worth of debit card and A.T.M. transactions together and then processing the highest amounts first — a practice that has caused large numbers of consumers to overdraw more quickly and pay more fees — it will credit the transactions chronologically. Chase also plans to allow customers to opt out of overdraft coverage.”

And why not consider going back to the days when overdraft protection was tied to a savings account, credit card or other line of credit? For this kind of service, do you need to charge $35 per transaction? Or can you charge something a little easier for consumers to swallow?

#4 – Balance Alerts

People are less likely to spend more than they have… provided they know how much they have in the first place.

You don’t need to include any sensitive information in balance alerts. Just send a message that says, “This is an automatic alert that you requested to receive whenever your account drops below the amount you specified.” If the person wants to know when they’re below $20, $200 or $2,000, it’s up to them. If your balance alerts include a blurb about being able to “check your balance online,” you should be able to improve online banking adoption rates.

Balance alerts can be delivered with a text message to people’s mobile phones, but they can also be sent by email. Even the good old telephone with a pre-recorded message that simply says (paraphrasing), “FYI, you’re overdrawn.”

At the very least, a financial institution offering “courtesy pay” should attempt some form of courtesy contact by the end of the day.

#5 – Accept/Reject Overdraft Purchases

Why not implement an accept/decline option right at the point-of-sale? “Continuing with this transaction will result in a $XX overdraft fee. Accept/Decline?” The moderate technological challenges with such a solution seem surmountable.

Then it wouldn’t really matter what you charge, nor if people have opted into your overdraft program. The consumer would have the choice. If they think paying $34 in fees for a $4 cup of coffee is worth avoiding shame and embarrassment, they’ll pay it. They may even thank you for it.

Even if you don’t like this idea, just keep in mind that Congress does, along with 85% of America. The other 15% probably doesn’t incur overdraft fees.

In honor of the new season of Mad Men (season three starts Sunday, August 16), here’s a showcase of financial ads from yesteryear. The ads come from a different world than we live in today — before compliance departments saddled paragraphs of legal disclosures on rate ads. You’ll notice how few of the ads targeted consumers. Banking bank then was all about business accounts.

Note: You can click on most of the ads to view a larger size.

TORONTO DOMINION
This help wanted ad promises the “finest working conditions in Canada.” Given today’s definition of  “working conditions” and considering Canada’s affable reputation, it seems like an odd thing to promise. If you were too nervous or shy to stop by the local branch about a job, you could write for their free employment booklet, “The Sky’s The Limit.”

BANK OF AMERICA
The banking powerhouse demonstrates its branding acumen back before the concept of “branding” had even been formally introduced. The ads have a consistent voice, message and style. Some of the ads feature a product promo for traveler’s cheques. Note the Old English calligraphic typography used in this older version of the logo. State by state, BofA has branded itself and the bank of the U-S-of-A.

BANK OF AMERICA
Two different ads for traveler’s cheques. If you liked the cool one from India, you could write the bank a letter and they would send you a full-size poster version of it.

BANK OF MONTREAL
Bank’s have been touting how long they’ve been in business since at least 1935, as in this ad where the bank is celebrating its 117th year. The message may have had value 75 years ago, but these days, as someone on Twitter recently noted, “It only proves you haven’t gone out of business…yet.”

CADDO NATIONAL BANK
This ad must have come out around the time fire and the wheel was invented, because it’s promoting the idea of having “a bank account.” For its time, this was probably a powerful ad, because even by today’s standards, the ad still packs a punch. Notice how the bank includes its capital position.

CHELSEA NATIONAL BANK
The monospaced computer typeface — a necessity in the early days of computer displays — screams “We want you to think we’re hip and computer savvy.” But the illustration says “tangerine dreams and marmalade skies, man.” Who cares? The scene is groovy.

DRY DOCK COUNTY
This is what’s known as a long-copy ad. It seems hard to believe, but there was a time when ads with this much copy were all the rage. Everyone had a story to tell, so they told it. These days, such a longwinded and rambling presentation would probably be laughed at. “Who has the time to read this?” The advertiser isn’t even mentioned until the 10th paragraph, where the bank touts its Saturday hours. Notice the offer for a free picture map of the local area.

FIRST NATIONAL BANK OF CHICAGO

THE NATIONAL CITY BANK OF NEW YORK
This ad hails from a time when it was considered shrewd business to have underpaid (and underdressed) “natives” do your dirty work.

THE CHASE NATIONAL BANK
Did you know that Chase once referred to itself as The Chase? This ad must have been what happened to the last ad after a merger, presumably between Chase and National. Oppressed natives have been removed from this all-white world.

SHAWMUT BANK
In advertising circles, this ad is what’s known as a “headless wonder,” meaning it has no headline. The advertiser — in their hubris — thinks they are so interesting and important that you’ll feel compelled to read the ad. No need. It probably just said what all the other bank ads said back then: “We’ve been around since 18XX and have helped our community grow because of our unique local knowledge and experience.” Sound familiar?

WELLS FARGO
The gal on the cover of this internal newsletter looks like she might be getting pretty excited about The Branch of the Future. Oh wait, that didn’t come around for another six or seven years.

BANK OF AMERICA
This ad ran in India. It targeted parents of children headed to the U.S. to get their college degrees. The ad pre-dates “no penalty CDs,” so the best they could offer was a loan on 75% of your CD’s principal. Interesting choice to include the illustration of a yo-yo.

BANCO NACIONAL
Is the guy in the illustration paying a monkey for bananas?

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.]

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.