车载电子蚊香:HSBC: A Case Study In Bank Branding | The Jak...

The financial services sector has come a long way: from arguing that banks are beyond branding to a phase where banks and other financial institutions are using branding strategically – like any other business. Even more so, the current economic climate has taught financial institutions that strong brand equity will become more important than ever before once the world economy gets back on track.

This evolution is due in large part to the global financial competition and consolidation of the last decade or two. The banking institutions that have traditionally taken charge of branding have been US-based institutions and less their Asian counterparts. Citigroup is the pioneer in this regard, while others such as Goldman Sachs and Morgan Stanley also having done their part in their respective markets.

HSBC, Standard Chartered Bank and Barclays have also adapted to the changing demand for branding quite effectively.

Branding in the financial sector is not very different from that of other industries; the reasons for branding, the advantages of branding and the process of creating brands is quite similar. Still, banking has unique characteristics that make branding quite a challenge.

A classic example of a successful branding case is HSBC. The company, which started out in Hong Kong, soon spread across Asia and beyond. HSBC started focusing on branding early on as a sure path for global success.

The dual aspects of global competition and the involvement of stakeholders’ funds make branding financial institutions quite focused.

The first aspect that any financial institution focuses on is building an unquestionably good reputation and credibility for its operations. HSBC has probably done both of those things more successfully than any of its peers.

HSBC started out in a period when banks around the world were grappling with bloated portfolios of diverse customers, products and services. Even though most financial institutions were moving toward become one-stop-shops for financial advice and solutions, they were not fully equipped to handle the many challenges involved in such a move, least of all branding.

HSBC has been quite successful in categorizing its businesses and focusing on the strengths of each. With individual ownership of its various units — private banking, investment banking, consumer banking and many others — HSBC has created an internal architecture that allows for proper branding. In addition, HSBC is one financial institutions that has recognized the impact of branding within its entire organization, as well as branding’s strategic importance.

HSBC has also been a pioneer in developing an internal leadership program that nurtures talent and grooms leaders. These initiatives have earned HSBC a solid reputation.

Another aspect that stands out in the case of HSBC that can serve as a guide to any financial institution is the ease with which it has managed its role as a global institution. Even though it is headquartered in London and Hong Kong, each of HSBC’s many country centers makes full use of and encourages local talent.

This is a classic example of “glocalizing” — a concept that even many consumer durables companies grapple to grasp. Through its “The World’s Local Bank” advertising campaign, HSBC has strived to set itself apart as a bank that, while it has many global connections, is still nimble enough to care for the needs of local customers in the ways they prefer.

These HSBC initiatives can indeed serve as valuable examples for other Asian financial institutions in their branding efforts.