A GLOBAL BANKING league table of brand value shows the Queen’s bank, Coutts, has plummeted by 42% in just 12 months while RBS, NatWest and Nationwide also fell.
The Brand Finance Banking 500, conducted by brand valuation and strategy consultancy Brand Finance, shows that HSBC kept its position as the UK’s most valuable bank brand, with a value of $27.3bn (£17.5bn).
Both HSBC and second placed Barclays registered negligible growth rates of 1.5% and 0.1% respectively. Both have been significantly affected by a toughening regulatory regime.
Lloyds demonstrated strong growth, up 16% to $6.9bn (£4.4bn), intimating that CEO Antonio Horto-Osorio has masterminded a successful turnaround. Renovated branches and a refreshed image suggest a new confidence, helping to distance Lloyds from the problems of the company’s recent past, the report authors said.
But it is the recently revived TSB that fared the best, according to the report, earning the crown of the UK’s most successful bank brand, having grown by over 21%. The report said its marketing has emphasised not only its competitive rates but also the importance of straightforwardness, trust and heritage.
Brand Finance CEO David Haigh said: “A strong brand builds loyalty, helping to reduce churn. As switching becomes easier and with nimble competitors emerging, some banks may have to rely on the power of their brand ever more heavily to hold onto customers.”
On a global front, Wells Fargo remains the world’s most valuable bank brand with 15% growth taking its total value stands at $34.9bn.
JP Morgan chief executive Jamie Dimon recently voiced concerns that overregulated western banks might be superseded by Chinese brands. Brand Finance’s research showed that ICBC has moved from sixth to second place place in the rankings, overtaking HSBC, now third globally.
China Construction Bank, which has already overtaken HSBC in terms of market capitalisation, has grown its brand by 39% to overtake Citi, BoA and Chase. Spain’s Santander has been pushed to the bottom of the top ten by Bank of China and Agricultural Bank of China.