Considering the fact that the financial industry goes back to ancient civilization, branding is a new concept which has become crucial for success in todays modern world. If you watch old TV shows and movies, you will know the concept of the frontier banker. There used to be just one bank in town, which would be a solid looking building with heavy bars on the windows, and you could go there to simply borrow or deposit money. The bank was always busy as it had no competition.
Today, times have changed considerably as we are surrounded by a wide array of financial institutions, both online and traditional bricks and mortar. There is fierce competition for customers, and institutions have to make an effort on multiple fronts for attracting and retaining customers. They now have to invest heavily in advertising, offering new products and services, while also adding new technology to improve efficiency.
But, where is the brand building? If no one knows who you are, they will not pay attention to your products and services. Your bank will not look any more different from the next one. A brand serves as the identity of the financial institution and represents its values, personality and traits. It distinguishes your business from others, because strong brands are captivating, likeable, memorable and relatable. A strong brand provides you with greater control over your bank’s future because it gives you the power to communicate with your peers, customers and the public.
We spoke with Katherine Rose a branding expert in the financial industry, about some of the ways branding is paramount to the industry, fresh from her latest campaign for logbook loans online lender elogbookloan.uk.
There are a number of ways that effective branding can help in the financial sector:
A strong brand gives you a competitive edge
With a strong brand, a business can create a strong emotional connection with its customers, whether they are individuals or commercial organizations. More than the products and services that are offered by a financial institution, the brand is their reputation, their promise. Not only does it resonate with people, it also helps you become recognizable instantly. When customers see your brand and listen to your message, it becomes easier for them to choose you. This makes a business less vulnerable to competitors.
A strong brand helps to build trust
When it comes to matters of money, trust is vital. Strong brands are perceived by customers as higher value and lower risk. This strengthens a business’s bargaining power when they are dealing with potential partners and vendors. It is also helpful in reducing turnover, fueling employee pride and also attracting top talent.
A strong brand can ease financial pressures
Organizations in the financial sector are also businesses. In fact, they are highly regulated businesses. Increasing regulation, changing tax policies and the need to find new revenue sources and cut costs have made uncertain times for businesses in the financial industry. These risks can be mitigated by a strong brand with goodwill that boosts actual company value and customer loyalty.
A strong brand directly speaks to your customers
Today’s world has become content driven, which means that everyone can now be regarded as an empowered decision-maker. Strong brands can support this fact because they position themselves as useful resources, not just purveyors of products or services. This can be immensely helpful in building customer confidence and trust.
A strong brand can mitigate the pressure of mergers and acquisitions
Due to the numerous benefits that a strong brand can offer, financial institutions that wish to stay independent can protect themselves from unwanted takeovers. A strong brand increases the negotiating power of any financial organization that wishes to merge with or acquire others.
These are just some of the prominent benefits that branding can give a business in the financial sector.